How Do You Know if You Can Trust a Trustee?

If you have a trust, you are probably already aware that a great deal of responsibility lies on the shoulders of your trustee. This individual is essentially in charge of overseeing the entire trust after you are gone. Choose a trustworthy trustee, and you can feel confident knowing that your estate, your beneficiaires, and your overall wealth will be well taken care of after your passing. Choose an untrustworthy trustee, and you may be setting your beneficiaries up for all kinds of legal issues after your passing. So, how do you know if you can trust a trustee?

 

If you have been searching for an estate planning attorney in New Jersey, look no further than Giro, LLC, Attorney at Law. We know that establishing and maintaining a trust can be complicated at times, and thinking about the future is never easy. Book a consultation, and you can ask as many questions as you would like about trusts and the estate planning process in general. We can help you pursue a solid trust with a sense of confidence and efficiency.

The Uniform Prudent Investor Act

 

Fortunately, trustees are beholden to a number of US laws that essentially force them to manage your wealth in a responsible manner. One example of this is the Uniform Prudent Investor Act. This set of laws established a solid set of standards and guidelines that trustees must follow when managing and investing assets on behalf of trustors and beneficiaries.

 

Other Requirements

 

Trustees are also required to adhere to a number of other guidelines and requirements, including those that are laid out by the Prudent Trustee Rule, the Office of the Comptroller of the Currency, and the State Departments of Banking.

 

With all that said, it is important that your beneficiaries play an active role in overseeing the trust. If they do not keep a close eye on the trust, they may never discover that certain requirements and guidelines are being ignored or violated.

 

An update on the well-established “Prudent Man” Rule, the Uniform Prudent Investor Act requires trustees to preserve the estate, generate income, and see to the unique needs of the beneficiaries.

 

Note that this does not mean that your trustee will automatically face legal consequences if they lose your money as a result of unprofitable investments. The law accepts that investing is an unpredictable endeavor, and that losses are always a possibility.

 

It does, however, lay out clear guidelines. For example, trustees are required to diversify when investing. They also run the risk of legal consequences if they speculate too heavily or engage in high-risk investments.

 

Enlist the Help of a Qualified Attorney Today

 

If you have been searching for an estate planning attorney in New Jersey, look no further than Giro, LLP, Attorneys at Law. Over the years, we have helped many individuals who are approaching the estate planning process. Whether you have questions about trusts, wills, or anything else, we can help. Book your consultation today, and you can take your next steps with a sense of confidence and efficiency.