Trustee's Duties

Whether the Trustee is appointed by Will or appointed in a Trust, the duties of a Trustee are usually delineated in the instrument. Generally, the Trustee is expected to do the following:

1. Accept, or take possession, and control the Trust assets.
2. Invest the Trust assets prudently to generate a stream of income for the benefit of the beneficiaries.
3. Fulfill mandatory directions as outlined in the Trust instrument, and exercise discretionary duties with impartiality and "discretion."
4. Enforce all claims and suits which the Trust has against other parties, and defend actions against the Trust.
5. Keep careful records and render accounts when required to do so.
6. Pay all taxes and reasonable expenses of administration.
7. Distribute income and/or principal according to the terms of the Trust.
8. Ensure confidentiality.
9. Generally, to do all acts regarding the property which an owner of the property could do, however, the Trustee is expected to refrain from self-dealing, commingling the assets with his own assets, pledging the Trust assets as collateral for his or her benefit, and generally, treating the Trust assets as his or her own.

A Trustee is a fiduciary. By accepting this position, the Trustee accepts certain strictly defined legal duties and responsibilities, and exposes himself to substantial penalties if he fails to discharge his duties properly or violates the high standards prescribed for Trustees. The law imposes these high standards in order to protect the Trust assets and, ultimately, the Trust beneficiaries. Even though the Trustee's duties are detailed in the Trust instrument, if any Court should later find that the Trustee did not act in a prudent manner with the Trust assets, the Trustee is liable, regardless of whether or not the particular situation that triggered the Court action was a specific violation of a detailed duty or not