Financial Trustee Service Considerations

A financial trustee is a person or firm who manages property or assets on behalf of a third party. One may be appointed for various reasons, including, but not limited to, settlements, litigation, bankruptcy, environmental remediation or charitable funds. A financial trustee has a fiduciary duty of loyalty to the trust and its beneficiaries, and also a duty of impartiality to the beneficiaries. It’s essential that the day-to-day activities of the trust are properly managed and monitored to ensure the objectives and obligations of the trust are achieved.

Examples of services that a financial trustee may provide are:

Trust Establishment

  • Establish one or more bank accounts with approved financial institutions
  • Determine appropriate accounting methods
  • Develop a record retention system to maintain complete and accurate records
  • Create policies and procedures for day-to-day operations to meet individual needs of the trust

Trust Administration

  • Receive invoices and manage the invoice approval process prior to remitting payment
  • Direct cash receipts and disbursements
  • Manage cash flows to ensure sufficient liquidity to meet anticipated needs of the trust
  • Manage and invest assets of the trust
  • Maintain records of all actions and communication with respect to the trust
  • Make, execute, acknowledge and deliver contracts or agreements related to the trust

Financial Reporting & Tax Preparation

  • Prepare and distribute monthly, quarterly and annual financial statements
  • Prepare monthly bank reconciliations
  • Prepare customized reporting for legal, governmental agency (i.e. Environmental Protection Agency) or other reporting purposes
  • Plan for and prepare annual federal and state tax returns

For more information on Schneider Downs’ financial trust and fiduciary service capabilities contact Joel Rosenthal at 412.697.5387 or [email protected] or Alyssa Brunatti at 412.697.5371 or [email protected]. For similar articles, visit the Our Thoughts On blog.

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The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2022 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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