There is a certain amount of responsibility that goes along with trust administration here in Mississippi.

If you have recently found yourself appointed as a trustee of someone else’s estate, you may be feeling overwhelmed by the responsibilities.

While there are many things to do and take care of during this time, here are 5 things to keep in mind as you begin to gather documents and close out your loved one’s affairs:

1. You, as the person in charge of the estate must be impartial.
This means that family feuds, sibling rivalries, and other real or imagined slights cannot be allowed to interfere with the fair and honest administration of the trust.

2. The trust assets should be insured, and if they are lost or destroyed due to the trustees’ negligence, he or she can be held liable.

Remember, if is your duty as the trustee to file and pay taxes for the trust and take care of other trust-related expenses.

3. The trustee also is responsible for ensuring that the trust produces income.
This means the money can’t just sit in a checking account; it needs to be invested wisely so it generates income for the beneficiaries. Because the state requires you to make prudent choices when it comes to investments, it is wise to speak with an attorney or financial advisor to find out what specific regulations apply.

4. The beneficiaries of the trust must be informed of the activity of the trust.
As trustee, you bear this responsibility of keeping beneficiaries informed, which also includes supplying required documentation when requested, and providing all beneficiaries with an annual statement of the accounts.

5. The person in charge of trust administration must be able to avoid conflicts of interest and cannot make decisions which favor the trustee over other beneficiaries.

This is self-explanatory, but again if you do not feel as though you can be impartial in your job, it’s best to avoid future liability by getting help in the first place.

Hopefully by now you have a good idea of your responsibilities as a trustee and you can see that trust administration requires a combination of personal integrity, business savvy, and interpersonal skills.

As with all estate planning, don’t be afraid to get help if you are not sure what to do next or the best steps to take when closing out your loved one’s estate. Our law firm is here to answer any questions you may have, so please feel free to call us at (601)925-9797 to schedule a free consultation.