SimplyTrust Knowledge Base

A: Issues come up in trust administration. Here are some common ones: 1) cash flow in the early days, 2) incomplete inventory and titling gaps, 3) record-keeping that won't pass muster, 4) distribution decisions under HEMS, 5) co-trustee friction and conflicts of interest, 6) taxes, calendars, and K-1s, and 7) digital assets and access to those assets.

A: At its core, being a trustee means accepting fiduciary duties: acting in the best interests of the beneficiaries, managing assets prudently, and following the terms of the trust. These duties are not casual; they are enforceable by law. Trustees who fail to meet them can face consequences ranging from loss of the role to financial liability.

A: At its core, trustee liability flows from fiduciary duties. Trustees must act in good faith, put beneficiaries first, and manage assets prudently. Fail those standards and the trustee can be held accountable. Trust liability comes in two forms:1. To beneficiaries. For breach of trust (e.g., poor investing, self‑dealing, or failing to inform and account).2. To third parties. For contracts or torts connected to trust property. The Uniform Trust Code (UTC §1010) generally shields trustees from personal liability on properly disclosed contracts, but tort liability can attach if the trustee is personally at fault.

A: Yes. An estate plan puts your wishes in writing and keeps your family out of avoidable red tape. Beneficiary designations on accounts can move money directly to your chosen people, often outside probate. And those designations can even override instructions in a will if they conflict—something many folks learn the hard way.It also fills gaps the law doesn’t cover well. If someone passes without a will or a trust, state intestacy rules decide who inherits, usually prioritizing spouses and blood relatives. Unmarried partners are often left out entirely unless documents say otherwise.

A: 1) Stay Neutral—Don’t favor one beneficiary over another, even if you’re related to them. This protects you from claims of bias or mismanagement.2) Keep Things Transparent—Beneficiaries can get suspicious if they feel left in the dark. Regular updates build trust and help prevent disputes.3) Know When to Ask for Help—Some tasks, like filing taxes or valuing real estate, are best handled by professionals. Delegating these doesn’t mean you’re not doing your job; it means you’re doing it wisely.

A: Debts are divided just like assets. That includes mortgages, credit card balances, car loans, and student loans—if they were taken on during the marriage. Example: During their marriage, a couple racks up $20,000 in credit card debt furnishing their new home. In their divorce, they’re both responsible for half—even though only one of their names is on the card.]

A: Their tax professional failed to identify the PFIC status for years, potentially leading to punitive tax implications.

A: Including grandchildren in your estate plan is a meaningful way to support their futures—financially and emotionally. It also gives you the flexibility to shape that support based on your goals and their needs. Some grandparents help with college costs. Others ensure there’s money for a wedding, first home, or career change. And some leave behind personal treasures—like journals, letters, or cherished keepsakes—that carry family stories forward.