158: Avoiding Trustee Liability: Critical Steps Before Distributing Assets

Being named a trustee is a significant responsibility that demands careful attention, time, and effort—and missing critical steps can lead to complex legal consequences. In this episode of Absolute Trust Talk, host Kirsten Howe and associate attorney Jessica Colbert delve into real-life cases where trustees overlooked essential duties. They discuss three crucial questions every trustee must ask before making final distributions:

Time-stamped Show Notes:
0:00 Introduction

1:10 Before diving into today’s topic, Kirsten and Jessica discuss the key responsibilities trustees often overlook and how these can lead to legal complications.

3:00 – Trustee Question 1: “Have you done everything necessary concerning income taxes?” A trustee’s tax responsibilities go beyond filing a final tax return. If you haven’t addressed Form 1041, there may be unresolved issues.

5:58 – Trustee Question 2: “Is there a supplemental property tax bill coming?” Learn why reassessments can lead to unexpected tax bills and what trustees need to know to prepare.

7:27 – Trustee Question 3: “Do I need to do an accounting for the beneficiaries?” Find out why providing an accounting is crucial for trustees to protect themselves from future legal claims.

10:06 – Kirsten and Jessica wrap up with a preview of the fourth question trustees need to ask, which will be covered in the next episode.

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Your Trust Administration Guide:
The job of a trustee isn’t as easy as one may think. You must give legal notices, retitle assets, file tax returns, understand a legal document, and perform a variety of tasks most people find unfamiliar. As a trustee, if you forget a step or make a mistake, you could be held liable. Protect yourself, have a plan, and find out the next steps about your specific trust. Schedule a one-hour roadmapping session with Absolute Trust Counsel. We will review your trust, answer your questions and develop an action plan to get the job done right. https://absolutetrustcounsel.com/trus...

Kirsten Howe and the Absolute Trust Counsel Team Can Be Reached at 925-943-2740 or [email protected].

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