Millions of Americans manage money or property for a loved one who’s unable to pay bills or make financial decisions. To help financial caregivers, the Consumer Financial Protection Bureau, or the CFPB, worked closely with the American Bar Association Commission on Law and Aging to prepare four (4) consumer guides:
- Help for agents under a power of attorney.
- Help for court-appointed guardians of property and conservators.
- Help for trustees under a revocable living trust.
- Help for representative payees and VA fiduciaries.
Two of the CFPB guides, Help for Agents Under a Power of Attorney, and Help for Court-Appointed Guardians of Property and Conservators, were previously published on this blog. Another guide is provided in this blog post.
The Third Guide: Help for Trustees Under A Revocable Living Trust
This guide is for those who have been appointed as a trustee under a revocable living trust.
A trust is a legal arrangement through which one person holds legal title to property for another person. The creator of a revocable trust is called the “grantor” or the “donor.” While he or she is alive, the grantor is usually also the beneficiary of the trust. Further, the grantor or another person or persons can serve as either the sole trustee or as one of a number of co-trustees. The trustees manage the assets in the trust, which can include real estate, bank accounts, investments, and tangible property (such as fine art) under the terms set forth in the trust document.
Revocable trusts are an effective way to avoid probate and provide for asset management in the event of incapacity. In addition, revocable trusts–sometimes called “living” trusts–are incredibly flexible and can achieve many other goals, including tax, long-term care, and asset-protection planning.
This guide, published by the CFPB, discusses the responsibilities of trustees under a revocable living trust. This guide will help readers understand what they can and cannot do when acting in the role of trustee.
The trustee guide is annexed below, and is free to download:
For additional information concerning estate planning and administration, visit:
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