Most expenses that a fiduciary incurs in the administration of the estate or trust are properly payable from the decedent's assets. When such a formal proceeding is not required, it is nevertheless good practice to require all beneficiaries to sign a document, prepared by an attorney, in which they approve of your actions as fiduciary and acknowledge receipt of assets due them. 2022 Maryland Statutes :: Estates and Trusts :: Title 14 - Trusts This is extremely important for a number of reasons. WebIf you are a trustee, a is vital which you familiarise yourself with those duties, because you can be liable for "breach of trust" if you do not fully fill i. In an estate plan, the beneficiary receives trust property and a trustee has a fiduciary duty to maintain the trust and its assets. ! The fiduciary is given a reasonable period of time thereafter to make the actual distributions. For example, a husband may create a trust with the intent of splitting the assets between his wife and kids. The trust creator, generally yourself, names the If a complaint involves more than routine issues, consult with an attorney who specializes in trust and estate matters. In addition to distributing trust assets to beneficiaries, they must maintain the assets, file and pay necessary trust taxes, and record the trust's activities. Keep a step ahead of your key competitors and benchmark against them. From Real Estate Litigation, Wills & Trusts, Estate Planning, Probate, to Construction Litigation and Business Law, Antonoplos & Associates has the experience and talent to meet your legal needs. Many trustees are also beneficiaries of their trust. Perhaps the terms of the trust provide for trust fund distributions to be made annually to the beneficiaries of the trust on the death anniversary of the settlor, but the successor trustee decides to distribute trust funds to beneficiaries as lump sums. A beneficiary is a person or charity who will receive benefits from your life insurance policy, financial accounts, annuities, and estate. Commonly, beneficiary disputes will occur when one beneficiary questions the trustees objectivity. How does long-term disability insurance work? Specifically, the terms of the trust may involve subsequent beneficiaries and/or tax safeguards. Instead, this applies if the trustee acts in a way that is careless or negligent.