Legal Question in Wills and Trusts in Massachusetts

Re: family trust law in massachusetts

All right let's first deal with the responsibility of the trustee. You see I said responsibility and not liability. The trustee has a fiduciary duty to all of the beneficiaries of the trust. That is the highest duty any individual can have since you're dealing with assets which have a value, income producing subject to the terms of the trust. You have a responsibility which is higher than normal under the circumstances. If you breach that responsibility you are subject to severe penalties, depending upon the severity of the breach and the damages caused by the breach. My advice, if you are the trustee get good professional advice from attorneys, accountants, financial advisers, investment advisers or whoever have the experience and credentials to given to you. Do not do anything without good advice and that's the best advice I can give you. Rent-free my you know what. As a trustee in California the formula is set forth in the probate code applicable to the payment to the trustee for the reasonable services. That is approximately one percent of the value of the estate. Now if you do something which is not within than normal and reasonable duties than you may have a right to additional compensation during the accounting period term, at the end of the term when an accounting is tendered to the court if required by the trust, at the discretion of the court. This is called extraordinary services and must be documented in full. I would never allow my trustees who I represent to take extraordinary compensation without a prior court order unless there are good circumstances and everyone who is a beneficiary agrees that that he is reasonable compensation for the extraordinary acts of the trustee. Those acts must bring a benefit to the estate. At trustee merely because they are a trustee has no right to bleed the estate

Re: family trust law in massachusetts

In California, compensation and responsibilities are governed by the trust agreement and California law. Free rent sounds like a matter of self-dealing, which the trustee has to be very careful about. The compensation also sounds potentially excessive unless the estate is very large. I would assume Massachusetts has similar rules, but you should consult a local practitioner. Feel free to contact our office if we can be of assistance.

Re: family trust law in massachusetts

There is some important information that you are leaving out. Has the revocable living trust become irrevocable? What I mean is did the Settlor (the person who created the trust) die or become incapacitated?

If not then they Trustees (usually the Settlor and one other in MA) can do almost anything they want.

If however the trust is no longer revocable, then the trustee's powers are limited by statute and/or the terms of the Trust. Without seeing the Trust, it is hard to know what the Trustees powers are.

Usually, a Trustee is entitled to take a reasonable fee for his or her services. As to use of the property rent free, that too depends upon the terms of the Trust as to the Beneficiaries. If the Trustee is also a Beneficiary such as a wife or person who took care of the deceased, they may also be entitled to use of the property rent free under the tems of the Trust. Generally, a Trustee is not entitled to the use of trust property for his own benefit although frequently self-dealing is allowed.

The Trustee has a fiduciary duty to handle the assets reasonably and prudently for the beneficiaries within the scope of the intent of the Trust.

Without seeing the Trust or knowing more details it is impossible to be more specific.