Pennsylvania Trustee Mistake # 8 - Failing To File Tax Returns Or To Seek Professional Assistance

David M. Frees III Avoiding Trustee Mistakes
Pennsylvania Trustee Mistake Part 8

Failing To File Tax Returns Or To Seek Professional Assistance On Complicated Issues
And Day To Day Tasks

It is an honor to be named as a trustee. But being a trustee can be a very complicated,time consuming, and laborious position. Now, more than ever being a trustee can also subject you to risks that never existed before.Whether you are interpreting the actual trust document to decide how to proceed, creating an investment strategy, or keeping the beneficiaries informed each decision you make has legal and financial ramifications.

There are many rules and regulations, like following the Prudent Investor Rule, the Pennsylvania Uniform Trust Act, and the Principle and Income Act that govern the trust and its management,as well as the rules set forth in the trust itself. In addition there are many simple issues such as record keeping, and filing tax returns that must be accomplished consistently to avoid problems, interest, and penalties.

If you are not familiar with the legal aspects of being a trustee and the financial nuances it can be a big mistake not to seek a professional to protect your liability and help you do the job of trustee. In addition, many trusts allow an individual trustee to name a bank and or trust company to provide many of these services.

See all ten of our articles on How To Avoid The Most Common Mistakes Trustees Make:

Avoiding Trustee Mistakes No. 1: Trustees Failing To Understand The Trust Language

Avoiding Trustee Mistakes No. 2: Trustees In Trouble Making Early Distributions

Avoiding Trustee Mistakes No. 3: Trustees Failing To Follow The Prudent Investor Rule

Avoiding Trustee Mistakes No. 4: Trustees Failing To Follow The Uniform Trust Act

Avoiding Trustee Mistakes No. 5: Trustees Failing To Follow The Principle And Income Act

Avoiding Trustee Mistakes No. 6: Trustees Failing To Communicate Properly

Avoiding Trustee Mistakes No. 7: Failing To Properly Reform, Amend, Or Terminate

Avoiding Trustee Mistakes No. 8: Failing To File Tax Returns Or To Seek Professional Assistance

Avoiding Trustee Mistakes No. 9: Failing To Understand The Role Of Multiple Trustees

Avoiding Trustee Mistakes No. 10: Trustees Failing To Do The Job


David M. Frees III
[email protected]
610-933-8069


Representing trustees and executors
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