Trustee rights are established by trust laws and trust jurisprudence to provide legal safeguards for individuals and corporations who assume the fiduciary duties of a trustee. Trustees have the right to settle debtor claims, dispose of assets, receive a full account of all assets, and receive reasonable remuneration. A trust is created by an individual while alive or in accordance with the will of the deceased after death. Trustees have the right to refuse to act as such without any legal obligation. The trustee’s right to dispose of property is often the cause of disputes between trustees and beneficiaries. Trustees may hire professionals and receive a reasonable fee.
Trustee rights are those created by the trust and established by trust laws and trust jurisprudence, in order to provide legal safeguards for individuals and corporations who are called upon to assume the fiduciary duties of a trustee. Specific rights often include the right to settle debtor claims, dispose of real and personal assets as the trustee sees fit, and receive a full account of all assets that come into the trust through probate. The trustee is also entitled to a reasonable fee, which is often an annual fee. Trust beneficiaries also have rights and can sue a trustee for punitive damages if they can show that the trustee’s actions were not done for the benefit of the trust or its beneficiaries.
A trust is created by an individual while alive or in accordance with the will of the deceased after death. A trustee is appointed to manage the trust’s affairs on behalf of the beneficiary, and subsequent trustees may also be appointed. Any individual, company or organization appointed as a trustee has the right to refuse to act as such without any legal obligation. If the trustee chooses to assume the legal duties and responsibilities of managing the trust, then the first source for determining your trustee rights is the trust document. The trust instrument often expands the trustee’s rights beyond those found in regional trust laws.
The right of the trustee to dispose of property, especially real estate, is often the underlying cause of the dispute between the trustee and the beneficiaries. For example, the trustee may decide to sell a home that is dear to the beneficiaries and distribute the proceeds according to the percentages indicated in the instructions of the trust. The trustee may decide that real estate market conditions, such as declining property values, dictate that a sale be required. The same goes for personal possessions, such as jewellery, clothes or works of art. A trustee often tries to accommodate the wishes of the beneficiaries if the trust leaves no clear instructions for the disposition of assets, but when many beneficiaries are involved, there are often conflicting interests.
Trustees are also granted the right to receive reasonable remuneration for their work and money to hire other professionals from time to time. For example, a trustee may need to hire an attorney to help settle debts with creditors or to represent the trust at the closing of a home sale. The amount of remuneration to the trustee is often represented as a percentage in the trust instrument. Beneficiaries can ask the court to change the fee if they believe the amount is unreasonable in relation to market rates as well as in light of the value of the trust.
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