Can trustees make decisions?

Can trustees make decisions?

Legal vs. The person who manages the Trust assets, the Trustee, can do so unilaterally—without any input or say from you, the beneficiary. But Trustees who make decisions over Trust assets without involving beneficiaries in the decision are playing a dangerous game.

What a Trustee Cannot do?

The trustee cannot fail to carry out the wishes and intent of the settlor and cannot act in bad faith, fail to represent the best interests of the beneficiaries at all times during the existence of the trust and fail to follow the terms of the trust. And most importantly, the trustee cannot steal from the trust.

What rights does the Trustee have?

A Trustee owns the assets in the sense that the Trustee has the sole right, and responsibility, to manage the Trust assets. That includes selling and buying assets. Since the Trustee is the legal owner, the Trustee can exercise his or her power unilaterally with no input required from the Trust beneficiaries.

Do trustee decisions have to be unanimous?

The general duties of trustees are: To act unanimously – Trustees must act unanimously unless the trust deed says otherwise. To act carefully and distribute assets correctly – Trustees must provide income for the beneficiaries but still preserve the value of the capital.

What happens when trustees disagree?

If the trustees cannot agree how to decide a matter on which they have discretion then one option is to apply to the Court. However, that a Court might impose its decision on the trustees, should encourage them to work even harder to reach a consensus.

Can a trustee help themselves with your assets?

Before you panic, remember that the trustee cannot simply help themselves to your assets or even mix their assets with those of the trust. They have to be conservative with their investments, and they cannot swing for the fences with your money. But they are still able to choose where and how to invest the trust’s money.

Should I hire a corporate trustee for my trust?

Most trustees will feel that they have little incentive and upside by making too many decisions of their own. Many times, a trustee can hire a corporate trustee who will help them in managing the trust. However, you should not be complacent and assume that the trustee will act this way.

What happens if a trustee exceeds his or her powers?

A trustee who exceeds the scope or nature of his or her powers may find him- or herself the named defendant in a lawsuit filed by the trust’s beneficiaries. Keep trust assets separate. A trustee cannot comingle trust assets with any other assets.

Can a beneficiary of a trust not talk to the trustee?

Of course, as a Trust beneficiary you should not give the Trustee any reason to not talk to you. Being abusive, confrontational, or yelling does not promote open lines of communication. And if you are not able to speak with your Trustee without being any of these things, then you should communicate in writing instead.