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What is the Purpose of Naming a Trustee in a Tennessee Will?

Posted on Aug 24 2014 9:59PM by Attorney, Jason A. Lee

A lot of people do not completely understand the different positions that are often identified in a Tennessee will.  One such position that is identified in many wills is the position of a trustee.  Often wills provide for assets to be paid to certain individuals including minor children.  This often occurs when people designate a minor child as a direct beneficiary in a will (such as to a son or daughter).  Or money or property can be left to adult children but if those adult children are deceased when the person who wrote the will dies, then potentially their minor children (grandchildren) could obtain assets (this is often done when there is a per stirpes designation in a will). 

 

For this reason, it is almost always important to name a trustee in your will even if a trustee is unlikely to ever actually be needed.  The trustee is the person who would hold the money or assets on behalf of the minor individual until the time the assets are distributed to the beneficiary at the appropriate time.  This is a very important position.  Essentially this is the individual who makes all decisions about when the minor children can have access to any of the money left to them in trust.  Oftentimes, a minor child will still need money to be used for their benefit like to buy them clothing, school supplies, a car or to pay for their education.  This should be an individual that you absolutely trust. 

 

Often in wills a trust that is established for minor children or minor grandchildren will terminate at a certain age.  Many people provide that the trust will terminate once that person reaches 25 or 30 years old.  I recommend that you do not allow the trust to terminate at 18 years of age because in my opinion 18 year olds should not be getting a large chunk of money.  It is best to keep the trust active for an extended period of time beyond age 18 so the money is not squandered.  When the child reaches a more advanced age, they are more likely to handle the assets more responsibly (although there is never a guarantee that will be the case). 

 

It is important to note that there are many statutes that govern the responsibilities of a trustee in Tennessee.  This is a job that needs to be taken seriously since a trustee has fiduciary responsibilities that are very serious and if violated can cause the trustee significant financial harm.  For this reason, a Tennessee attorney should often be retained to ensure compliance with Tennessee law as a trustee. 

 

Follow me on Twitter at @jasonalee for updates from the Tennessee Wills and Estates blog.

TAGS: Trustee, Wills
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Jason A. Lee is a Member of Burrow Lee, PLLC. Contact Jason at 615-540-1004 or jlee@burrowlee.com for an initial consultation on wills estate planning and probate issues.

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Copyright © 2018, Jason A. Lee. All Rights Reserved
Tennessee Wills and Estates Blog
Jason A. Lee, Member of Burrow Lee, PLLC
611 Commerce Street, Suite 2603
Nashville, TN 37203
Phone: 615-540-1004
E-mail: jlee@burrowlee.com

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