Acceptance Of Office By Trustee

DEFINITION of 'Acceptance Of Office By Trustee'

A mutual understanding that a person has with the estate that implies they will assume administrative duties after being nominated. Acceptance of office by trustee is basically a formal way of giving consent to serve as a trustee. After being nominated, a trustee may decline to serve but cannot decline after accepting, nor delegate the responsibility.

BREAKING DOWN 'Acceptance Of Office By Trustee'

A trustee is a person or institution who has legal title to hold property on behalf of the recipient. They act on the behalf of the beneficiary and are allowed to make decisions based on their professional criteria and best judgment.

Once they accept the office, many trustees serve on a voluntary basis without receiving payment for their work. Some of their duties include handling a trust's affairs, ensuring that it is solvent and well managed, and delivering the outcomes and benefits that were originally set out for the trust. Trustees also prepare reports on the trusts and make sure that the trust complies with the law, among many other responsibilities.

RELATED TERMS
  1. Employee Trust

    A trust fund established by an employer on behalf of its employees ...
  2. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  3. Revocable Trust

    A trust whereby provisions can be altered or canceled dependent ...
  4. Trustee

    A person or firm that holds or administers property or assets ...
  5. Irrevocable Trust

    A trust that can't be modified or terminated without the permission ...
  6. Fiduciary

    A fiduciary is a person who acts on behalf of another person, ...
Related Articles
  1. Insurance

    Here's How To Care For Your Pet (Financially) After You're Dead

    Find out how to protect and provide for your pet after you pass away.
  2. Retirement

    Designating A Trust As Retirement Beneficiary

    Designating a trust as your IRA beneficiary can be beneficial, but it requires proper planning to avoid problems.
  3. Taxes

    Tax-Efficient Wealth Transfer

    Taxpayers with large taxable estates were required to take steps to reduce them before 2011.
  4. Home & Auto

    Can You Trust Your Trustee?

    Ignorance and incompetence can cost you money. Make sure your trustee is up to the task.
  5. Retirement

    6 Estate Planning Must-Haves

    You need an estate plan even if you don't have significant assets. Learn what you need to include in yours.
  6. Options & Futures

    An Estate Planning Must: Update Your Beneficiaries

    Life changes make it time to rewrite your plan's designations.
  7. Retirement

    Refusing An Inheritance

    Contrary to popular belief, inheriting assets isn't always a good thing. Find out what to do if you want to disclaim them.
  8. Tax Strategy

    Profit from Art with a Charitable Remainder Trust

    With a CRUT, art collectors can avoid capital gains taxes on the sale of art– while also leaving their favorite charity a legacy.
  9. Estate Planning

    Before You Agree to Be an Executor: Know This

    How to avoid 5 surprising hazards of being the executor of an estate.
  10. Personal Finance

    The Top 6 Books for Estate Planning

    Here are six outstanding books that can help you with your estate planning.
RELATED FAQS
  1. Are estate planning fees tax deductible?

    Estate planning fees may be tax deductible, but only if certain conditions have been met. Internal Revenue Service (IRS) ... Read Full Answer >>
  2. Can personal loans be included in bankruptcy?

    Personal loans from friends, family and employers fall under common categories of debt that can be discharged in the case ... Read Full Answer >>
  3. How much money does Texas make from unclaimed property each year?

    In 2014, the office of the Texas Comptroller of Public Accounts reported $234 million in unclaimed property claimant liabilities, ... Read Full Answer >>
  4. How much money does Michigan make from unclaimed property each year?

    According to the 2013-2014 Annual Report of the State Treasurer, the state of Michigan earned only $82,875 in abandoned and ... Read Full Answer >>
  5. Who decides if a financial security should be escheated?

    There is no one entity who "decides" to escheat assets. Rather, financial institutions are required to report inactive accounts ... Read Full Answer >>
  6. Will 529A plans replace special needs trusts?

    529 ABLE plans, also known as 529A plans, are state-sponsored accounts authorized by Congress that allow people with disabilities ... Read Full Answer >>
Hot Definitions
  1. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  2. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  3. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  4. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  5. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
Trading Center