Maryland Trust Administration Lawyer
A trust is a fund that is set aside in the event of a person’s death and could be used to provide for a child’s education, the administration of a charity, or the care of a loved one.
All trusts are managed by a trustee. These trustees have great powers under the law, but also have a legal obligation to properly perform their duties. A trustee can be held personally liable for any failures due to negligence or malfeasance.
A Maryland trust administration lawyer could help trustees perform their duties under the law. A skilled attorney could interpret the language of testamentary documents, identify and perform the necessary steps under those documents, and provide a court with all confirmations of completion.
The Role of a Trustee
A trust is a type of testamentary document that provides property or assets to a beneficiary. This differs from a will in that the beneficiary does not directly receive the bequest. Instead, the grantor gives the property to a trustee, and that trustee oversees the distribution of the property to the beneficiary.
The trustees, also known as trust administrators, are responsible for overseeing this process. According to Maryland Code §14.5-802, a trustee must administer the trust solely in the interest of the beneficiary. They are only allowed to act in a way that furthers the interests of the trust and not for their own benefit.
A trustee has an obligation to act only in the best interest of the beneficiary. However, under MD Code §14.5-804, courts will apply the standard of reasonableness to determine if a trustee has violated this duty. In other words, a Trustee must take reasonable care, skill, and caution when performing their duties. A Maryland attorney with experience in trust administration could help meet this burden.
Steps a Trustee May Need to Take
The role of a trustee may vary depending on the specific language of the document. Generally, a person creates a trust by transferring property to another and granting a trustee control over the distribution. A trustee must take all appropriate steps to achieve that goal.
The duties of a trustee may include:
- Performing a full inventory of an estate’s assets
- Working to sell or transfer real estate
- Making sound investments of trust property
- Working to wind down a business
A local legal professional could determine a trustee’s duties under the documents and work with trustees to complete those steps.
A Maryland Trust Attorney May be Able to Help With Trustee Duties
Being named a trustee grants you significant powers. However, it also places a high legal burden on your shoulders to conform with the terms of the trust. A failure to meet this obligation is not only a violation of the law, but it may also open you to personal liability to the trust beneficiary.
Proper trust administration requires an ability to interpret the terms of the trust as well as taking the necessary steps to complete those terms. This could involve the protection of assets, the sale of real estate, or making sound investments. A Maryland trust trust lawyer could help with all these steps. The duties of a trustee begin as soon as the trust forms. Call today to get in touch with a skilled legal professional and start planning your next steps.
