Operating in a Fiduciary World

• Author: Margaret A. Munro, Kathryn A. Murphy
• Profession: Has more than 30 years' experience in trusts, estates, family tax, and small businesses/Attorney with more than 20 years' experience administering estates and trusts and preparing estate and gift tax returns
• Pages: 9-18

CHAPTER 1 Operating in a FiduciaryWorld 9

Chapter1

Operating in a

FiduciaryWorld

You may have known for a while that someone close to you has named you

as the executor of his or her will, as the trustee of a trust he or she’s cre-

ated, or even as both. That knowledge may make you feel extremely hon-

ored while that person’s alive and kicking and still able to look after his or her

assets.

Those warm and fuzzy feelings may come crashing to a halt, though, the day you

hear that your friend has passed away, and you’re now in charge of the show. All

eyes will be on you as you pick up the reins and try to keep this buggy called an

estate or trust moving along at a steady clip, while keeping all the promises writ-

ten down during your friend’s lifetime. The responsibility is huge, but so is your

potential satisfaction, as you honor his wishes after he is no longer around to

appreciate your actions.

This chapter is a jumping-o point for understanding what an estate administra-

tor or trustee actually does: assumes control of someone else’s aairs in a way

that’s both sensitive to family dynamics and responsive to family needs.

Mishandled, estate and/or trust administration can cause permanent family rifts;

on the other hand, competent and careful management helps keep family memo-

ries happy and purpose intact.

IN THIS CHAPTER

»

Becoming comfortable with the

terminology surrounding estates

andtrusts

»

Encapsulating estates and taking

care of trusts

»

Preparing and ling tax returns

fortrusts, estates, and decedents