I spent the first six years of my post-law school life working as a professional trustee — first for a large national bank, then for a smaller boutique trust company. I learned so much from these experiences that it’s difficult to pinpoint any specific point where I really felt like I truly understood trusts . . . what motivates grantors to create them, what considerations attorneys must take into account when drafting them, and what a trustee truly needs to understand when managing one. But I can tell you this: the learning process was one that took years. Not weeks or months, but a years-long process that involved reviewing and discussing with my colleagues thousands of trust documents. I’ve since written articles for legal journals around the country about various trust rules, laws, and proposed laws. Yet still I find myself regularly looking up trust statutes and best practices while hoping to find a positive resolution for my clients.
I am always impressed when an individual steps up to act as the trustee of a trust. The trustee is the trust’s “CEO” — the person who manages the assets, decides what distributions to make, keeps records, sends statements, ensures tax returns are filed, et cetera. In short, a big job which is typically done for free by someone known personally by the grantor (the grantor is the person that created the trust with a lawyer). Trustees can (and in many cases should) be professionals, but more often than not, they are family members of the grantor with little or no experience. What takes a professional years to learn becomes the immediate responsibility of this family member. I really admire that family member’s willingness to step up and do the job.
The down side to being an inexperienced trustee may be obvious. I’ve worked with many who found themselves over their heads . . . angry beneficiaries, outdated records, delinquent taxes, under-performing or under-diversified investments . . . you name it, I’ve probably seen it. I’ve been asked by other attorneys how their client can learn to be a trustee so that they might avoid these frequent problems. Not having a ready answer, I decided to write a thirty page brochure discussion this topic.
Thirty pages turned into 300 (free chapter here). I hope this book will help family members to better understand what is involved in the management of a trust, what they need to do when taking on this important responsibility, and how better to communicate with beneficiaries. Importantly, the book discusses the various professionals a trustee may need to hire (investment professionals, attorneys, accountants, and professional co-trustees). These professionals have every expectation that their clients understand the trusts they are working on; I hope this book will help.
Philip J. Ruce creates wills and trusts for families who want to feel secure that their loved ones are cared-for. Philip is a trust and estate attorney based in Minneapolis, Minnesota. Philip is the author of Trustee University: The Guidebook to Best Practices for Family Trustees. available at Amazon.com in paperback or Kindle edition (free chapter available here!) He also works with trustees and beneficiaries who need help with their trusts. You can contact him here.