Tennessee Funeral Service Laws Rules & Regulations (LRR) Practice Exam

What document outlines the responsibilities and obligations of a trustee?

1. A testator's will

2. A burial contract

3. A trust instrument

4. An estate ledger

The correct answer is: A trust instrument

The correct choice is a trust instrument because this document specifically outlines the responsibilities and obligations of a trustee. A trust instrument serves as the foundational legal document that establishes a trust, detailing how the trust's assets are to be managed and distributed, as well as the duties that the trustee must uphold. Its provisions govern the trustee's actions, ensuring they act in the best interests of the beneficiaries according to the terms set forth by the grantor. In contrast, a testator's will primarily focuses on the distribution of an individual's assets upon their death and appoints an executor to oversee the will's execution, rather than detailing a trustee's obligations. A burial contract typically pertains to the arrangements for funeral services and does not address trustee duties. An estate ledger serves as a record-keeping tool for tracking the assets and liabilities of an estate, but it does not define the trustee's responsibilities or powers. Therefore, it's clear that the trust instrument is the unequivocal document that encompasses the role and duties of a trustee.