As your parents age, they might be unable to manage their assets and financial affairs themselves due to cognitive decline or health issues. Setting up a trust for your elderly parents protects them from financial losses resulting from fraud or mismanagement. Here’s how you can use trustee services for an elderly parent:
The Roles and Responsibilities of a Trustee
A trustee is an individual or institution appointed to hold and manage the assets held under a trust on behalf of a third party, in this case, your elderly parent. The trust agreement lists the people (beneficiaries) who should get your parent’s property or assets after they pass away. Professional trustee services manage the assets according to the beneficiaries’ best interests. Trustees offer the following services:
Asset and Property Management
Your trustee is responsible for keeping the assets under their care secure. When you set up a trust, the trustee creates an inventory of all the assets listed in the trust. They verify the trust name under which the properties are held. They then set up all the required records needed to track all transactions under the trust. The trustee makes decisions on how to manage the assets as circumstances change.
Communication With Beneficiaries
Trustees must communicate with the beneficiaries listed in the trust agreement to inform them about their parent’s wishes for the trust. They must also give the beneficiaries regular updates on the trust’s activities and financial status. The trustee is available to answer any questions you or the other beneficiaries may have about the trust.
Financial Planning and Decision Making
The trustee is responsible for investing any investable assets based on the trust’s objectives. They must review and reconcile all trust accounts regularly and monitor trust expenses. Your trustee may hire a professional team to handle the trust’s accounting requirements and file estate taxes.
How To Use Trustee Services
Talk to your elderly parent about their financial goals and assess their needs before engaging the services of a trustee. If your parent has health issues that require specialized care, ask what level of involvement they want in their medical care decisions.
Choose the Right Trustee
You want a trustee that has your parent’s best interests at heart. You might need to hire a private trustee if you have complicated family dynamics or lack someone within the family who can handle trustee responsibilities. When selecting a private trustee, look for one with experience in financial planning and asset management. The trustee you hire should understand your parent’s needs and preferences and be able to collaborate with you and the family on your parent’s care.
Establish a Trust
Once you choose a trustee, establish a trust agreement with them outlining your expectations concerning your parent’s care and asset management. The contract should specify the specific assets held under the trust. Specify the trustee’s responsibilities and the beneficiary’s rights and interests in the trust agreement. Cover issues like the trustee’s decision-making capacities and provisions for income distribution among the beneficiaries. Include the succession plan for your parent’s assets and properties in the event of death.
Monitor Trust Implementation
Once the trustee assumes their responsibilities, monitor the trust’s performance to determine its effectiveness in meeting your parent’s financial goals. You can request periodic reports on the trust’s activities. Check the quality of investments made by the trustee and their returns. Also, regularly communicate with your trustee about how best they can meet your parents’ needs.
Protect Your Elderly Parent’s Assets
Managing your parent’s assets and healthcare needs may be difficult when you have other responsibilities, such as your family and career. Trustee services have the experience and workforce needed to manage your parent’s assets, finances, and healthcare requirements. With these services, you can protect your parents’ interests without getting overwhelmed by the burden of caring for them. Search for a reliable trustee service provider today.