Transcript

So, someone just named you as their trustee. Maybe it's your mom, your sister, maybe a close friend. And you're thinking, "Okay, I'll help manage their

money if they need it. No big deal." Here's what you need to know. Because being a trustee is a big deal. You get it wrong and you could be sued. You

could be forced to repay money from your own pocket. You could even face criminal charges in jail time. Now, I'm not trying to scare you. I'm trying to

prepare you. Because most people become trustees with zero training. They think they're just helping out a family member. Then they make some innocent mistake that turns into a legal

nightmare. So, in the next 15 minutes, I'm going to walk you through everything you need to know to protect yourself and

the person who trusted you.

Let's call her Lucy Pickleberry. By the end of this video, you're going to understand your responsibilities. You'll be able to avoid the biggest mistakes

and know exactly how to fulfill this role without destroying your life. Lucy created something called a revocable living trust. Think of it sort of as a

legal container that holds her assets, her house, her bank accounts, her investments, and she named you as the trustee. This means if Lucy gets sick or

injured and can't manage her own money, you're going to step in and make decisions about the assets that are in that trust. Now, here's the critical

part most people miss. A trust is only as good as what's actually in it. And we see this constantly at Enduring Legacy Mentors. People will create this

beautiful trust like these. They got their documents, but then they never fund the trust. They never actually transfer the assets into the trust. It'd

be like buying a safe but leaving all your valuables on the kitchen counter. Now, if Lucy did it right, she changed the title on her house to Lucy

Pickleberry, trustee of the Lucy Pickleberry Living Trust. She moved her bank accounts from her name into the trust name. Now, why does this matter to

you? Because if those assets aren't actually in the trust, you have zero authority over them. You can't touch Lucy's house if the deed is still in her

name alone. You can't manage her bank account if her bank account is not in the name of the trust. So, what's your first step? You're going to verify

what's actually in the trust. You want to get a complete list. Now, there are three roles in every trust. There's three. While Lucyy's still alive, she's

probably made herself the trustee. But when she passes or becomes incapacitated, you become the trustee, also called the successor trustee, and your job is to manage Lucy's money and

property on her behalf. The third role is the beneficiary. This is the person who benefits from the trust, who receives funds or payouts from the

trust. While Lucy is still alive, that's usually her, the beneficiary. But after she dies, it's whoever she named to inherit the estate in her trust. Now,

here's the most important thing. As trustee, you are called a fiduciary. A fiduciary is a legal term, and it means you must put Lucy's interests

above your own, above your interest, your other family members, anyone else related to you. You have to put her first because you're not managing your

money. You're managing Lucy's money and the law takes this extremely seriously. As Lucy's trustee, you have four

fundamental duties. And these duties are not suggestions. They are legal requirements. And I'm going to unpack every single one. Duty number one, act only according to the instructions of

Lucy's trust. This means you're going to be acting in the interest of her desire, not yours. In fact, every single decision you make has to benefit what

she put into the trust. Not you, not your kids, not relatives, Lucy. This means you got to read the trust document completely. It's your instruction

manual. It tells you exactly what Lucy wants and what you're allowed to do. And it also means you got to know when your authority starts because maybe you can

act immediately as co-rustee if there's another trustee or maybe only after Lucy becomes incapacitated or maybe only after she dies. The trust document will

tell you. This also means you have to avoid conflicts of interest. This is where people get in really big trouble. Can you borrow money from the trust? No.

Can you buy Lucy's car from the trust at a discount? No. Lucy needs a new roof. Your brother-in-law owns a roofing company. Can you hire him? Only if you

get competitive bids and his price is legitimately the best deal for Lucy. Here's the test. Would an independent person think that you are benefiting

personally from your decision? If yes, you have a conflict of interest. Do not change Lucy's estate plan. She decided

who gets what when she dies. Unless the trust specifically gives you authority to change that, her plan stays as written. And do not ever pay yourself

unless the trust document or state law allows it. And if you do get paid, keep very detailed records proving that your fee is reasonable. Duty number two,

manage the money and property carefully. Now, again, we're talking about the money and the property inside the trust. You must be more careful with Lucy's

money than you are with your own. So that's why you need to start with a complete inventory. List everything the trust owns. Bank accounts, investment

accounts, real estate, vehicles, insurance policies, valuable property, debts, and your job is to protect those assets. Keep the properties insured.

Review the bank accounts. Are they earning interest? Are fees too high? Keep real estate maintained. Make smart investment decisions. And if you don't understand investments, then hire a

financial adviser. You can pay them from the trust. Just make sure they are fiduciary who puts Lucy's interests first. Pay bills and taxes on time.

Missing deadlines will create penalties and damage Lucy's credit, which is relevant if she's still alive. Check if Lucy qualifies for benefits. Social Security, veterans benefits, Medicare,

Medicaid, pension benefits. These can make a huge difference in preserving trust assets. Duty number three, keep

the trust property separate. Never ever mix Lucy's money with your own. This is called co-mingling, and it's one of the fastest ways to get sued. Every account

holding trust money must be clearly labeled like this. your name followed by trustee for the Lucy Pickleberry living

trust dated and then enter the date that is on the title of the trust. That's usually the date that the trust was either drafted or signed. So when you

write checks, you're signing as trustee, John Smith, trustee, Bobby McGee trustee. And never deposit trust money into your personal account, even

temporarily. Don't do it. Why is separation so critical? Because if you mix money, it makes it impossible to prove later what belonged to Lucy and

what belonged to you. If family members accuse you of stealing, how are you going to defend yourself? Duty number four, keep excellent records. Document

everything. Every dime in, every dime out, dates, amounts, reasons, names. Keep all receipts even for small expenses. Keep bank statements. Keep

investment statements. Keep every piece of paper. Why? Because someone will question your decisions eventually. Maybe family, maybe a government agency,

maybe a court. Your records are your defense. They prove you managed Lucy's money responsibly. They show you did not steal anything. They demonstrate you

took this seriously. So, set up a system now. Don't wait. Get a dedicated folder. It could be a binder. It could be a folder in a Google Drive, accounting

software, whatever works, but use it consistently and don't leave a single thing out. At Enduring Legacy Mentors, we put together a 48 hour checklist of

things you need to do in the first 48 hours once you become trustee. If you click the link below, I will send that to you for free. It spells out exactly

what you need to do the first 48 hours when you've been handed the mantle of being trustee for whoever created that trust. And this could save you a lot of

time and headache. So, make sure you click that link below and get that and you can use it. We've seen families avoid years of conflict because the

trustee kept great records. We've also seen trustees sued into bankruptcy because they couldn't prove what they did with the money because they didn't keep records. Now, I'm going to give you

a few critical warnings to save you and Lucy's estate from a lot of pain. First of all, watch out for financial exploitation. People will try to take

advantage of Lucy. You might be thinking, well, she's dead once she dies. Like, why would they? That's actually when a lot of people will take

advantage of her. Sometimes it's family members. Sometimes it's caregivers, scammers. You need to recognize the signs. So, here's what to look out for. Watch for missing money or property,

sudden changes in spending, large ATM withdrawals, wire transfers, new people in Lucy's life who are suddenly great friends now out of the blue, and they

have a very intriguing interest in her finances. If Lucyy's still alive, someone isolating Lucy from family members and friends. If you suspect

exploitation, call the adult protective services immediately. I will include the link below. Call the police and alert Lucy's bank. Here are some of the most

common scams you're going to see as a trustee. The grandparent scam. This is where someone calls pretending to be a grandchild in trouble, needing money

wired immediately. Lottery scams. Lucy supposedly won money, but needs to pay fees first. Home repair scams. Someone claims her roof is failing and can fix

it today, but for cash only. Romance scams. Someone online claims to love Lucy and needs money for an emergency. Protect Lucy by registering her number

on the national do not call registry atd do notcall.gov. Monitor her mail and her email and never ever share account numbers or passwords

unless you are certain who needs them and why. Now you might have a co-rustee when you become trustee and this is where another trust is working alongside

you and the trust document will say whether you must agree on decisions or can act independently. Either way, it's critical that you communicate constantly

with your co-rustee. Lucy might have multiple beneficiaries, and you have a duty to all of them. You have to be fair, impartial. Family members may

question your decisions. You need to stay calm, keep records, be willing to explain yourself, but remember, you are the trustee, not the family member, not

the beneficiary. You make the final decision. Do not let personal feelings get in the way. You have to honor what Lucy requested no matter what the

beneficiaries and family members say. Now, understandably, you're not expected to know everything. So, hire professionals when needed. For example, if you have legal questions, find an

estate planning attorney specializing in trust and estates and get their help. For investment help, hire a fee only fiduciary financial adviser. For tax issues, work with a CPA for suspected

abuse. You can actually contact adult protective services and I'll include their phone number below as well. Here's what I want you to remember. Being a

trustee is serious. The law holds you to very high standards, but you can do this successfully if you simply follow these four duties. Act only in Lucy's best

interest, honoring her trust. Manage her money and property carefully. Keep trust property completely separate from yours. And keep excellent records of everything. This means you got to avoid

conflicts of interest. Don't borrow from the trust. Don't mix money. Don't change Lucy's plan without legal authority. And document every decision. And if you're

unsure about something, just stop and get help. Talk to a lawyer. Hire an accountant. Call Adult Protective Services if you suspect exploitation. Do you know what the biggest mistake

trustees make? It's thinking this is casual. Thinking, "Well, it's just family. No one will really care. I'm not perfect. We'll just kind of do and feel

my way into it." Wrong. Family members sue each other over money all the time. And courts don't care that you had good intentions. They care whether you

followed your legal duties. At Enduring Legacy Mentors, we help families understand that estate planning doesn't end with creating documents. It includes proper execution, proper trust funding,

proper asset management, and especially proper support for trustees like you. Because the truth is the success of the trust will rise and fall on the actions

of the trustee. Now Lucy created this document to protect her wealth and ensure her wishes are honored. By taking your role seriously, you are honoring

that trust. You've got this. You can do it. In fact, there's a reason she asked you to be the trustee. Having watched this video, you now know more about

being a trustee than 90% of people who take on this role in the US today. If you found this helpful, make sure you like the channel and subscribe. And

again, if you want that 48 hour checklist of what you need to do as soon as you become trustee, it's free. Just click the link below. It'll send you an

email. Make sure you check your spam folder just in case. And you will have that in your hands and you can use it right now. Just click that link below.

Now go be the trustee Lucy needs you to be.

Frequently asked questions

What are the potential consequences of being an untrained trustee?

If you get it wrong, you could be sued, forced to repay money from your own pocket, or even face criminal charges and jail time due to innocent mistakes.

What is a revocable living trust and why is it important to fund it?

A revocable living trust is a legal container that holds assets like houses, bank accounts, and investments. It's crucial to fund it by transferring assets into the trust, otherwise, the trustee has zero authority over them.

What are the three main roles in every trust?

The three roles are the creator (who sets up the trust, often the initial trustee and beneficiary), the trustee (who manages the money and property), and the beneficiary (who benefits from the trust).

What does it mean for a trustee to be a fiduciary?

Being a fiduciary means you must legally put the trust creator's interests above your own, or anyone else's, because you are managing their money, not yours. The law takes this extremely seriously.

What are the four fundamental legal duties of a trustee?

The four fundamental duties are: acting only according to the trust instructions, managing money and property carefully, keeping trust property separate, and keeping excellent records.

Why is co-mingling trust funds with personal funds a serious mistake?

Co-mingling makes it impossible to prove later what money belonged to the trust versus what belonged to you. If family members accuse you of stealing, it becomes impossible to defend yourself.

What should a trustee do if they suspect financial exploitation of the beneficiary?

Immediately call Adult Protective Services, contact the police, and alert the beneficiary's bank. Also, monitor their mail and email, and never share account numbers or passwords.

How should a trustee handle family members who question their decisions?

You need to stay calm, keep detailed records, and be willing to explain yourself. Remember, you are the trustee, not the family member or beneficiary, and you make the final decision to honor what the trust creator requested.