Elder Law Report
Elder Law Report
Fiduciary Duty: What Trustees MUST Know
Taking on the role of trustee means stepping into a position of significant responsibility that comes with legal obligations many people don't fully understand. This enlightening discussion between attorneys Haley Matson and Jordan McIntyre breaks down the critical aspects of being a trustee and managing someone else's assets as a fiduciary.
The attorneys clearly explain that accepting a trustee position means you're legally bound to a set of duties including loyalty, impartiality, and prudent administration. They highlight the specific legal frameworks governing these responsibilities, pointing to Chapters 32C and 36 of North Carolina law where these duties are formally outlined. For anyone serving as a trustee, understanding these legal requirements isn't optional—it's essential to protect both the beneficiaries and yourself.
The conversation takes a practical turn when the attorneys identify the most common pitfalls they've observed in their practice. They emphasize the dangers of mixing personal and fiduciary funds, particularly when close family relationships are involved. Using trust assets for personal benefit, ignoring the explicit terms of trust documents, and failing to keep detailed records can all lead to serious legal consequences. Their advice is straightforward: document everything, communicate openly with beneficiaries, and seek professional guidance when needed. McIntyre Elder Law offers comprehensive support for trustees, from explaining document terms to handling accountings or even taking over administration duties when the responsibility becomes overwhelming. Whether you're a new trustee just learning your duties or an experienced one facing challenges, their team is available for consultation at offices in Shelby, Charlotte, and Hendersonville.
Ready to understand your trustee responsibilities better? Schedule a free consultation by calling 1-888-999-6600 or visiting the firm's website to explore their educational resources on fiduciary duties and trust management.
Good morning everyone. I'm attorney Haley Matson with McIntyre Elder Law, here with attorney Jordan McIntyre, and today, on this Elder Law report, we're going to be talking about what trustees need to know, so being a trustee is a very important position. If you do choose to accept it, it's going to be what they call a fiduciary role, so you will be managing someone else's assets and their money. As a trustee, you have a couple different duties that you need to follow, including, like the duty of loyalty, impartiality. You need to administrate it prudently and if there's any investments that need to be done, those also need to be prudent investments, if there's any investments that need to be done.
Jordan McIntyre:Those also need to be prudent investments. Yes, and if you want to specifically know where all these duties are contained right for powers of attorneys, it's within Chapter 32C. With any type of trust, planning and trust, it's going to be in Chapter 36. But as an agent or a trustee, you are on a fiduciary duty and you want to be aware of what your obligations are. This will be outlined within your specific document. But also, just very simply, you need to make sure you document your transactions.
Jordan McIntyre:Hopefully you've had conversations with either the grantor, the trust grantor or the principal of that power of attorney, so you know what they wanted. Right. You know what your obligations are and as a trustee, you don't want to do something improperly and be sued by the beneficiaries, so you can meet with an attorney if you have questions about what your obligations are. Right. If you don't even know what a fiduciary is, definitely come into the office and ask us about what you need to be doing, how to be careful and just make sure you don't do something improperly that can expose you to civil liability. And Haley can give you some of those best practices and what to do.
Haley Matson:Yeah, sure. So some of the biggest pitfalls that we see with fiduciaries and trustees is going to be mixing personal and fiduciary funds. We've seen that happen in a couple different areas, most frequently with powers of attorney. It can be really hard when you're in a close relationship with that person Say, you're like a child and you're the agent of a parent.
Haley Matson:You just want to make sure that any sort of transactions, any money that you have and that they have, is completely separated. Similarly, you just want to make sure that any sort of transactions, any money that you have and that they have, is completely separated. Similarly, you also don't want to use their money for your benefit. If they find out that you've been using their money to order DoorDash, you could incur some civil liability there. I mean, that's not something you're supposed to do. You also can't ignore the terms of the documents here. So if you're a trustee and the trust instructions may say something that maybe you don't totally agree with, unless it says that you can only do it like within your discretion as trustee, you do have a duty to follow those instructions. And finally, it's always good to keep records and speak with the family, speak with the beneficiaries so that you know what they want and so that you know how the family is going to react to those things that you're going to do.
Jordan McIntyre:Yeah, and if you're having difficulty with administering a trust, come into the office. We can assist you. Read the trust document, explain exactly what you're supposed to be doing Technically. You do have that duty to account and you want to be careful with that because a beneficiary can request that accounting from you and you're required to present that. So if you need help with an accounting or just you want the office to become the trust administrator because you're having difficulty with it, that is a service that we provide. So if you want to go over any of this, meet in one of our offices in Shelby, charlotte or Hendersonville. Haley would be glad to meet with you in Charlotte she's a great attorney. I am kind of exclusively in Shelby and Hendersonville. Or visit the website at wwwmcelderlawcom. You can read all types of articles and watch videos on fiduciary duties and trusts, and then also give us a call at 1-888-999-6600. Schedule a free consult. We'd love to meet with you, thank you.
Haley Matson:Thanks, bye.
Jordan McIntyre:Bye, bye.