What exactly is trustee. Trustee is also known as a court-appointed individual whose duties are to manage the assets of one or more individuals who have died. This individual serves in many different capacities such as a personal representative of an estate, an executor appointed by a court, a probate judge or a trustee.
The term trustee was first used in the year 2021. It defines an individual who has authority to manage or handle a person’s assets after that person dies. The word trustee can mean a guardian, counsellor, lawyer or accountant. Trustee can also refer to a revocable living trust, a trust that is payable via installment, a trustee deed, or a lease.
In death, the property or assets of an individual pass to the trustee. This happens when a testator, who is the person legally holding title to the property or asset, dies. For instance, when a spouse dies, the surviving spouse may take over the property and account for it until the surviving spouse remarries. The property will then be held in trust by the new trustee until the original owner’s estate is settled.
A trustee does not deal with property or asset management. He or she is actually an advocate for the deceased’s heirs. He or she works with the beneficiaries to take care of their inheritance until the time of their death. However, the trustee cannot make decisions for the beneficiaries. If the beneficiaries don’t settle their inheritance, then the assets revert back to the estate of the deceased.
What are trustee and why would I need to use one? There are many instances where using a trustee can benefit you and your family. When you die, your estate will most likely leave you a substantial amount. You can usually get this settlement in the form of a life insurance policy, trust deed, or inheritance tax returns. To keep this cash within the estate and out of probate court, there must be some kind of overseeing body such as a trustee.
Some common examples of how a trust is used is in the case of wills. If a will was created before beneficiaries could settle inheritance taxes and other issues, a trust deed, which is just a paper document, becomes a legal way to ensure that the money will be dispersed according to the terms set out in the will. On the other hand, if a will was executed but no beneficiaries are named, the trust deed is the only way to transfer property and access the money without a lot of legwork.
Another example is during the administration of a beneficiary’s estate. The court appoints a trustee. They are responsible for managing the assets of the beneficiary while they work toward a will or retirement. Once the deceased has passed away, the trustee is then responsible for making sure that the assets continue to be managed properly. If there are problems, then it is up to the trustee to resolve them.
One of the questions that people often have about what is trustee and why is it important is the ability to provide cash for beneficiaries when they need it most. In the worst cases, families face a situation where a property or asset has no value and the only recourse is to sell it to pay past due creditors or for back taxes. Trustee companies are willing to work with the family and pay their share to the property or asset is not lost. They also work to ensure that the property or asset does not become an asset fraud.