When you create a trust as part of your estate plan, you are also choosing someone to carry out your wishes—the trustee. For families in Sevierville, Gatlinburg, Pigeon Forge, Nashville and across East and Middle Tennessee, understanding the role of a trustee is just as important as understanding the trust itself. A trust can only succeed if the trustee fulfills their responsibilities with care, honesty, and attention to detail.
What Is a Trustee?
A trustee is the individual or institution responsible for managing the assets placed in a trust. The trustee acts as the legal owner of the property, but they do not own it for themselves. Instead, they manage the assets for the benefit of the people named in the trust—the beneficiaries—according to the instructions laid out by the trust document.
Duties of a Trustee
Tennessee law imposes a “fiduciary duty” on trustees, meaning they must act in the best interests of the beneficiaries at all times. Some of the key duties include:
- Managing Assets Wisely: Trustees may need to invest funds, manage real estate, or oversee businesses included in the trust.
- Following the Trust Terms: The trustee must distribute assets exactly as directed, whether that means making regular payments, holding funds until a child reaches a certain age, or providing for special needs.
- Keeping Records and Accounting: Trustees must document financial decisions, maintain accurate records, and often provide reports to beneficiaries.
- Remaining Neutral: Trustees must treat beneficiaries fairly and avoid favoring one over another unless the trust explicitly allows it.
Why the Choice of Trustee Matters
Being a trustee is a serious responsibility. Some families appoint a trusted relative or friend, while others choose a professional, such as a bank or attorney, to ensure impartiality and experience. The wrong choice can lead to conflict, poor asset management, or even litigation. The right choice can provide peace of mind and smooth administration for years to come.
How Champagne Law Firm Can Help
At Champagne Law Firm, with offices in Sevierville, Nashville, and Rogersville, we assist clients in selecting trustees, drafting trust terms, and advising trustees on their responsibilities. Our attorneys help ensure trustees understand their duties and remain in compliance with Tennessee law. We also represent beneficiaries when disputes arise, protecting their rights and ensuring the trust is administered properly.
Taking the Next Step
A trust is only as effective as the trustee who manages it. By understanding the role of a trustee and making careful choices, you can ensure that your estate plan works exactly as you intended.
Call Champagne Law Firm at 865-228-8080 or reach out online to schedule a consultation about trusts, trustees, and estate planning in Tennessee.
