Page 22 - Southern Exposure- June '23

Page 22, Southern Exposure
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elder eState Planning

Have You Chosen The Right Trustee?

Submitted by Anné Desormier-Cartwright, Esq.

Whether you are What Is A Trustee? has authority over the trust, they are supposed to act in the best
reviewing your existing A trustee is a trusted decision maker who is tasked with interests of the beneficiaries. It is important that the trustee
trust or creating a new trust, handling all matters that relate to your trust. Depending on the clearly communicate with the beneficiaries, deliver necessary
you should understand the type of trust, you could be the trustee in the beginning and need information, and be available to answer any questions that the
important role that a trustee someone else to act as trustee only when you are unable to beneficiaries may have in a timely manner. A trustee must also
plays not only in handling manage the trust, or you could select a trustee to act immediately. be able to get along with the beneficiaries.
trust matters but also in What Types Of Trustees Are There? ● Follow rules. State and federal laws, as well as instructions
providing for and protecting When creating an estate plan, there are several types of within the trust, must be followed. While a trust may have
your loved ones. trustees to consider. An initial trustee is the decision maker that provisions that allow a trustee to use their discretion in some
What Is A Trust? immediately starts managing the trust’s accounts and property. matters, there are other instances in which the trustee is required to
A trust is an agreement You may choose to be the initial trustee if you create a revocable do certain things a specific way. Failing to comply with the rules
between an owner of living trust. However, for some types of irrevocable trusts, you can subject the trustee to potential civil and criminal penalties.
accounts and property (trustmaker) and another person will need to select someone else to be the initial trustee. Who Can You Choose To Be Your Trustee?
(trustee) who agrees to manage the accounts and property The successor trustee is the next in line to manage the trust. Although the choice of trustee is a very serious matter,
on behalf of a third party (beneficiary). In most situations, This person may need to act because the initial trustee becomes you have several options available to you depending on your
there is a written document, called a trust agreement, that incapacitated, dies, or steps down from their role. circumstances and what matters most to you.
lays out the specific instructions or rules that govern the trust You could choose to have one trustee handle the entire trust. ● Family members. It is common for clients to select
relationship. You could also choose to name a separate trustee for any subtrusts family members (spouse, child, parent, sibling, etc.) to be their
that you later create. For example, you may name your children trustees. Family members likely have an intimate knowledge
as the trustees for the subtrusts that are created for their benefit of your wishes and values, making trust administration easier if
loCal governMent at your death. In this instance, there may be several trustees you want to leave decisions to your trustee’s discretion. If your
acting once the subtrusts are created. However, they will only
trustee is also a beneficiary, they could choose not to accept any
be responsible for their separate trust and will have no control compensation for acting as trustee because they will already be
over other subtrusts that have their own trustees. receiving something as a beneficiary of your trust. However,
allowing the beneficiary to be the trustee of your trust could
What Does A Trustee Do?
Town Of Being a trustee involves many different important tasks, jeopardize or limit the protection of their inheritance.
● Close friends. Close friends likely understand your values
including the following:
Jupiter News ● Managing accounts and property owned by the trust or and wishes, making any discretionary decisions easier; however,
subtrust. Although the trust owns your accounts and property, a
depending on your family dynamics, your close friends may not
want to get involved in any conflicts that arise. Also, if they are
person needs to carry out most transactions. If the trust owns an
investment account, the trustee must watch the investments and not trust beneficiaries, they may want to be compensated for
By Jim Kuretski, Mayor, Town of Jupiter request any adjustments that may be needed to ensure the best the work they do, which could leave some beneficiaries feeling
outcome for the trust and its beneficiaries. disgruntled that your trustee is getting money from the trust (even
The Town Council ● Keeping the trust beneficiaries informed about the trust. though the trustee is legally entitled to it).
works with our town Although the trustee decides how trust accounts and property are ● Professional third party. If protecting your beneficiaries’
manager, staff and used, they do so on behalf and in the best interests of the trust inheritances is important to you, a professional may offer
others to address issues beneficiaries. A trustee is required to periodically inform the trust additional protection. Because administering trusts is their
affecting our residents beneficiaries about the status of the trust – what the trust owns, profession, they will likely understand every step that must
and businesses. The how much the trust is worth, what income the trust has received, be taken and have the tools to efficiently and accurately do so.
following provides a and what expenses the trust has paid. However, because trust administration is their job, they will
summary of actions and ● Acting as a point person for trust matters. If beneficiaries require compensation and will inform you of their fee. This
achievements since last have questions about the trust, the trustee is usually best suited amount will likely be higher than what a family member or close
month’s community to answer them. The trustee is also in charge of filing tax returns friend would seek in compensation.
newspaper report: and participates in any lawsuits involving the trust. We understand that you have an important decision ahead
Jupiter Medical Center What Should You Look For When Selecting A Trustee? of you. We are here to guide you through the decision-making
Expansion While it may be advantageous for a trustee to be financially process and answer any questions you may have along the way.
The Jupiter Medical Center (JMC) is continuing to savvy or have a background in tax, law, or finance, they are not Call us to schedule an appointment so we can help you check
expand its facilities to serve north Palm Beach County required qualifications. When considering potential trustees, we this item off your to-do list.
and south Martin County communities. recommend looking for someone with following qualities: Call our office today at (561) 694-7827, Elder & Estate
At the April 18 Town Council Meeting, approval ● Ability to ask for help when needed. The trustee does not Planning Attorneys PA, 480 Maplewood Drive, Suite 3, Jupiter,
was granted for major expansion to the Jupiter Medical have to be an expert in every area of trust administration. They can FL 33458.
Center to add a five-story addition and construct a five- get assistance from financial advisors, tax preparers, and attorneys The content of this article is general and should not be relied
level parking garage on the east side of the existing at the trust’s expense to fully carry out their responsibilities. upon without review of your specific circumstances by competent
hospital building, located at 1210 Old Dixie Highway. ● Be detail oriented. Trust administration is a process with legal counsel. Reliance on the information herein is at your
The five-story hospital addition will increase the specific legal steps that must be taken. The trustee will be asked own risk, as it expresses no opinion by the firm on your specific
number of available hospital beds by 92 from 284 to to compile a list of everything that the trust owns and keep circumstances or legal needs. An attorney client relationship is
376. In addition, a new five-level parking garage with accurate records of income and expenses. Being too general not created through the information provided herein.
845 parking spaces will be constructed on the northeast with this information can cause tension between the trustee and To comply with the U.S. Treasury regulations, we must
corner of the hospital property. beneficiaries and could lead to legal action. inform you that (i) any U.S. federal tax advice contained in this
Start of construction for the patient tower expansion ● Be organized. Depending on what the trust owns, how newsletter was not intended or written to be used, and cannot
is scheduled to begin in June 2023. many beneficiaries there are, and the trust distribution plan, be used, by any person for the purpose of avoiding U.S. federal
Strategic Plan 2023/24 there may be a lot of moving parts. In addition to managing the tax penalties that may be imposed on such person and (ii) each
The Town Council adopted the annual update of trust, the trustee will need to make sure that they do not mix their taxpayer should seek advice from their tax advisor based on the
the Town of Jupiter’s Strategic Plan at its May 2 Town personal affairs with those of the trust. taxpayer’s particular circumstances.
Council Meeting. Action plans have been developed for ● Have good communication skills. Although the trustee
each of the strategic initiatives. Action plan assignments
have been made to town staff and Town Council
members to collaboratively work to achieve the desired
outcomes and results. To view the entire strategic plan,
including those action items, visit www.Jupiter.fl.us/
StrategicPlanwww.Jupiter.fl.us/StrategicPlan.
New Town Hall Facility
Construction of the new Town Hall Facility on the
Town of Jupiter Governmental Campus, located at 210
Military Trail is progressing well and on schedule. The
topping out ceremony is scheduled to be celebrated on
June 8, at noon.
July Fourth Celebration
The town contributes to the funding for fireworks
displays conducted at Roger Dean Stadium in the 747-PALM
Abacoa Town Center on July 3 and July 4, each year.
We especially welcome Jupiter residents to come out 747-7256
and partake in these July Fourth celebration events.