Trusts and Trustees: What You Need to Know Before Saying Yes

Ryan Kittredge and Molly Brown break down the real responsibilities of being a trustee, how family dynamics come into play, and why getting it wrong can cost you.

By Hank Stolz | Radio Worcester

(Photo-submitted)

WORCESTER, Mass.- In this podcast of ClearPath Financial Partners, Ryan Kittredge and Molly Brown, provide an overview of what trusts are, the role of a trustee, the responsibilities and challenges involved, and considerations around setting up a trust. In this conversation Ryan and and Molly explain in layman’s terms exactly what can be expected and how family dynamics play a crucial role. As Ryan points out being the trustee is not for everyone, “If this lovely responsibility is bestowed upon you one day, you have this fiduciary legal duty, whether you like it or not. So you either better do a great job and check all the boxes or pass off that responsibility. You don’t want to just go in and do it sort of halfway or as you see fit, because you’re likely going to get sued or be massively exposed in several different ways.” Trusts are often set up as part of estate planning, with the original owner (grantor) establishing the terms and parameters of the trust. When the grantor becomes incapacitated or passes away, a trustee is appointed to manage the trust assets and ensure the terms are carried out. The trustee has a fiduciary duty to act in the best interests of the trust beneficiaries, which can be challenging, especially if there are disagreements among beneficiaries. Ryan and and Molly talk about family members thrust into the role or conflicts that can arise if a family member feels they are being treated unfairly. Selecting the right trustee is critical, as they can be held legally liable if they do not properly fulfill their duties. As Ryan says, “The fact is that these responsibilities are vast. Everything from proper record keeping administration, making sure paperwork is done, tax filing and reporting, communication, keeping the beneficiaries apprised of changes, rationale, what’s being distributed and why, what are the tax implications, all of that.”

This article was sourced from a transcript of a recent interview conducted by Hank Stolz on the Radio Worcester program Talk of the Commonwealth.