Understanding the Value of a Directed Trustee’s Role

 In Blog

The best approach to ensure that your wealth is properly managed when it comes time to pass it down when it comes to estate planning is to set up one or more trusts for your loved ones. 

You don’t want to wait to make sure that your assets will be dispersed and handled sensibly when it comes to the accounts, investments, and real estate you’ve worked so hard to keep throughout your life.

It took work to earn them, and it will take work to maintain them. Including a trust in your estate plan is the necessary step to ensure that your assets are managed exactly how you would like them to be.

A trust can simplify matters. A trust may be the best option for you if you have valuable property that you intend to leave to someone else in the future. However, no two trusts are the same. 

The specifics of a Trust depend on the sort of trust established as well as its beneficiaries and the assets it intends to manage.

The type of trust you create will have an impact on how it is managed. Knowing the many Trust options and other Estate Planning options can help you simplify your life, just as planning ahead can help lessen uncertainty.

Read on to understand what a trust is and a trustee’s role, particularly that of a directed trustee.

When Should You Use a Trust?

Because every estate planning scenario is different, specific estate planning documents, such as trusts, are frequently required. A trust is a formal agreement that enables the trustor/grantor to give an asset to the beneficiary on behalf of another person. 

The trustee is in charge of this transfer and asset management. The trustee can be the beneficiary or a neutral third party that does not receive any benefits from the trust but manages it in the beneficiary’s best interest.

By setting up a trust, a beneficiary may be able to obtain assets while paying less in taxes, court fees, and other costs associated with resolving an estate or transferring wealth. A directed trust is one of several different types of trusts that are used in estate planning. 

In contrast to some other trusts, a directed trust will have a directed trustee rather than an ordinary trustee.

What Is a Directed Trustee?

An advisor who has been carefully chosen, known as the directed trustee, is given part of the duties of allocating and managing the assets placed into trust under a directed trust. A wealth management company or a single person knowledgeable in the fiscal, legal, and other fiduciary obligations involved in overseeing the assets in a Trust may serve as this advisor.

What Is the Role of a Directed Trustee?

The duties of a directed trustee include the following:

  • Safeguarding the assets held in a trust.
  • Allocating those assets in accordance with conventional procedures or the terms of the trust agreement.
  • Ensuring that the paperwork related to the trust and its assets is maintained current. 

Where a trust incorporates investments, stock in a company, a shared asset, or when the interests of a minor beneficiary are at stake, a directed trustee may be used. 

To put it another way, a directed trustee may be employed when you wish to hire a specialist to ensure that the things you leave to someone else in the trust are taken care of appropriately.


There is a Trust that works best for any asset. Giving stock instead of money in a bank account can differ, and giving an heir a stake in a company or real estate can involve entirely distinct trust-management issues. 

Because of this, it’s crucial to pick the appropriate trust for the task and make sure all of your estate-planning and inheritance arrangements are recorded.

Estate Planning Lawyers Colorado is ready to help if you need a will and trust attorney in Colorado. We can assist you with all your estate planning needs, including wills, trusts, probate, and legacy planning. Call today for a consultation.

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