Yes, that is correct. My first impression of OP is that this was a RLT set up to bypass probate and distribute the assets. In that situation, it is much the same as being executor of the estate. Fees are established by the trust document or in a will if there is no trust. In the absence of that, they are decreed by state statute in every case I have been aware of. A trustee/executor is bound by the terms of the document and can only be liable for gross negligence or illegal activity. Managing investments prior to death (or afterwards) can be more of a sticky wicket. Trustee/executor must deal with all assets. Cannot pick and choose.
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I didn't mean to suggest that they couldn't, just that I made that initial assumption as a practical matter. I can see why some collectibles, art, jewelry might be put into a trust for tax purposes, or to exercise finer grained control than a simple bequest. But that's not what pops into mind when I think about a trust.
How often would sentimental items be put into a trust and a non-family trustee be given discretion over how such items be distributed? Short of consciously wanting an independent party to act as mediator (and hopefully with some protection against liability for exercising such discretion)?Comment
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