Creating a Trust can be a powerful way to transfer property to another person or charity. This process involves nominating a trustee to take temporary control over property and oversee its transfer to the designated beneficiary.
Trustees have immense responsibility under the law to fulfill their duties to the Trust maker and the beneficiary. A failure to perform one’s duties as a Trust administrator can have disastrous consequences.
If you were nominated as a trustee, speak to a Wake Forest Trust administration lawyer to learn more about your obligations. An experienced attorney can guide you through your duties and answer any questions you may have throughout the process of administering the Trust.
To create a valid Trust in Wake Forest, a person must name a trustee, as per North Carolina General Statutes § 36C-4-401. This trustee has the power to take direct possession of the property in question and even create a new bank account in the name of the Trust.
Importantly, a trustee must also fulfill their obligations under the language of the document. This includes distributing the property to the beneficiary at the appointed time. N.C. Gen. Stat. § 36C-8-801 says that a trustee has a duty to both the Trust maker and the beneficiaries to administer the Trust in good faith and for the sole benefit of the beneficiaries.
Accordingly, a failure to perform this role properly opens the trustee to legal liability to the beneficiaries. As such, any trustee in Wake Forest should consult a Trust administration attorney to ensure that they fulfill their legal obligations.
Many people choose to name lawyers as trustees. This is because attorneys have a better understanding of the law and duties of trustees. Additionally, attorneys may have experience serving in this role and know what steps are necessary to ensure the proper transfer of assets.
However, if you wish to name an attorney as your trustee, it is best to choose someone who did not have a role in drafting the Trust documents. A local attorney can further explain the legal nuances and potential benefits of choosing a lawyer to administer your Trust.
Trusts are a popular way for individuals to transfer property at any time. These documents can serve as an alternative to traditional Wills or even function as a way to transfer ownership tax-free.
Regardless of a person’s motivation for making a Trust, they must name a trustee. This individual has an obligation under the law to take control of property, keep it safe, and transfer it to beneficiaries at a designated time. Because this role requires legal knowledge and experience, trustees should consult a skilled Wake Forest Trust administration lawyer.
A seasoned lawyer can help you complete your duties, uphold the Trust’s purpose, and avoid common mistakes in the probate process. Call our firm today to set up an initial strategy meeting.