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:
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
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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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.