A trust is an estate planning option that many people use because there’s lots of diversity and it can lower estate taxes. It can also make settling an estate much easier since you can avoid the probate process. A trust can be set up in many ways by the grantor (trustor) so that property can be passed on to heirs, but there’s one thing that’s always the same. There’s always a trustee involved.
Who are these trustees? And do they affect funeral arrangements? Continue on to learn more about who trustees are and how they are selected.
What is a Trustee?
A trustee is a person or entity that is designated to manage a trust. The grantor of the trust chooses a trustee and names that person in the trust documents. The primary job of the trustee is to oversee the allocation of assets, repayment of debts and distribution of benefits to benefactors.
Being a trustee is a serious responsibility. The trustee has a fiduciary duty to act on the behalf of benefactors in their best interest.
And they can’t just manage the trust however they like. The trustee has to follow the guidelines established in the trust agreement. The grantor uses a trustee so that someone other than one of the beneficiaries can oversee the management and distribution of assets.
Who is Typically Chosen as the Trustee
The grantor who creates the trust will decide who the trustee will be. Technically, the grantor can choose anyone they want to act as the trustee.
Often the grantor will choose a person that they are close to and knows the family well. This could be a relative, friend or professional advisor like an attorney. Many grantors choose to use a neutral professional when an individual is chosen. This helps avoid any potential situation where the trustee may feel pressured by benefactors.
Another option is to use an institution to manage the trust. There are trust companies that specialize in establishing and managing trusts. Banks are also commonly used as trustees.
No matter who acts as the trustee, that information won’t be public knowledge. The benefactors have a right to know who the trustee is, but that information isn’t shared with anyone else.
Can a Trustee Influence the Funeral Arrangements?
The trustee is in charge of managing the financial affairs of a trust. Given that funerals are a necessary expense, it’s reasonable to wonder if the trustee will have a say in making funeral arrangements.
The first thing to know is that the trustee must follow the directives of the trust agreement. If the grantor gave directions for funeral arrangements, that is what the trustee has to go on. So, if the grantor specified that up to $8,500 was to be used for all funeral related expenses, with no other directive, the trustee does play a role. They are the one that has to ensure that no more than the specified amount is used, and that could have an influence.
At Direct Cremate we can work with the family of the deceased or a trustee. We are professionals that handle disposition efficiently so that the family can focus their attention on other matters to get the estate settled.
Give us a call or text to discuss arranging funeral services when a trust is involved.