Failure to do so can result in your removal from the role of trustee. Trustees owe a fiduciary duty to the trust beneficiaries-meaning you must always act in the best interests of the beneficiaries.
TRUSTEE DUTY TO INFORM EXISTENCE OF TRUST ALABAMA CODE
Code § 16061.7.) Consequences If You Don't Notify Beneficiaries § 736.0813.)Įxample: In California, within 60 days of the death, the trustee must give notice to beneficiaries of the trust as well as legal heirs of (1) the identity of the person who made the trust and the date the trust was made, (2) the name, phone number, and address of the trustees, (3) the address of the physical location where the trust is being administered (often the trustee's residence), (4) the entitlement of beneficiaries and heirs to request a copy of the trust document, and more. Make sure you follow your state's rules to the letter, and if you're in doubt, consult a local attorney who's experienced in trust administration.Įxample: In Florida, within 60 days of the death, the trustee must give notice to beneficiaries of (1) the trust's existence, (2) the identity of the person who made the trust, (3) the right of beneficiaries to request a copy of the trust document, (4) the right of beneficiaries to a trust accounting, and more.
There can be stringent requirements about exactly what the notice must contain and even what size the type must be in. How long does a trustee have to notify beneficiaries? States vary, but the deadline is commonly within 30 or 60 days of the settlor's death. (You don't have to send them a copy unless they ask for one.) The notice gives the beneficiaries a deadline for challenging the trust in court-for example, if they don't think the settlor had the mental capacity to know what he or she was doing when creating the trust. You must also let them know that they have the right to request a copy of the trust document from you. The notice typically must tell the beneficiaries about the trust and give them your name and address. If you're handling a simple living trust, qualified beneficiaries are just the people named in the trust document. (Legal heirs are the relatives who would inherit property under the law if there were no will or trust.) In many states, the rule is that you must send notices to "qualified beneficiaries." Those are people to whom you could distribute trust assets, who would receive trust assets if the trust were terminated now, or who would inherit if the current beneficiaries died. For example, California requires notifying legal heirs as well as beneficiaries. Your state's rules will specify whom you must notify. Wyoming What to Send in Your Notice Letter to Beneficiaries, When, and to Whom Most states have specific rules about how and when a successor trustee must notify beneficiaries about a trust. States That Require Trustee Notice to Beneficiaries (You'll be working with the executor to pay off debts, or you might be the executor as well as successor trustee.) That may take only a few weeks, or it could take a few months. You may want to mention that you won't be able to distribute trust assets until you've determined what those assets are and also figured out what debts and taxes need to be paid.
Try not to raise any unreasonable expectations. you will distribute the trust assets to the beneficiaries as soon as you can.you are in charge of the trust assets, and.the living trust has become irrevocable because of the settlor's death.Just explain the key facts, which usually are that: If your state does not have specific rules about what the notice must contain (but most do-see the sections below), a simple letter will do no special legal language is necessary. Notifying Beneficiaries of a TrustĪs soon as you take over as successor trustee-typically, after the person who created the trust (the settlor) has died-let the beneficiaries know. But it can be especially important when you first take on the job of trustee-after all, you want to start off on the right foot. This responsibility lasts as long as you're serving as trustee. If the beneficiaries don't have good, current information, they can't protect their rights.
Trustees have a legal duty to keep the beneficiaries of a trust informed about how the trust assets are being managed.
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