This responsibility can be complicated as trusts may involve multiple direct beneficiaries as well as those with interests in the trust which are subject to the direct beneficiaries’ interest. This involves striking a careful balance between the beneficiaries’ interests between themselves as well as that of the trustee.įiduciary Responsibilities: A trustee is a fiduciary which means that they have a financial responsibility to the beneficiaries of the trust and must place their interest above their own. This means that the trustee cannot serve their own interest above those of the trust beneficiaries. The trustee will also be required to manage distributions to beneficiaries.ĭuty of Loyalty: The trustee owes a duty of loyalty solely to the beneficiaries of the trust. The trustee must also pay the debts of the trust and identify trust assets. For instance, a trustee is required to locate and notify beneficiaries and creditors. There are many aspects to trust administration. While this may sound simple, administering a trust involves a great deal of care and precision. Trust Administration: Under Michigan law, a trustee must administer the trust in good faith expeditiously in accordance with the trust terms and for the benefit of the beneficiaries. Here are some of the primary responsibilities of a Michigan trustee:
Trustees are in an important position and with that position comes a great deal of responsibility. The person chosen for this role will ideally be someone that the beneficiary knows and in which the grantor (creator) of the trust has a great deal of faith. When creating a trust one of the most important decisions you must make is who will be the trustee.
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