Understanding the Trustee's Duties

• Author: Margaret A. Munro, Kathryn A. Murphy
• Profession: Has more than 30 years' experience in trusts, estates, family tax, and small businesses/Attorney with more than 20 years' experience administering estates and trusts and preparing estate and gift tax returns
• Pages: 161-171

CHAPTER 10 Understanding the Trustee’s Duties 161

Chapter10

Understanding the

Trustee’s Duties

After you’ve been named, and agreed to serve, as trustee (a person who holds

property for the benet of another) of a trust (a right of property that one

person holds for the benet of another; the conditions of the trust are usu-

ally spelled out in a trust instrument), you need to understand the trustee’s duties

and powers as soon as possible. Your duties may vary based on the type of trustee

you are (independent or family), but regardless, you now have duciary duties!

Hopefully, the trust creator asked whether you were willing to serve before he or

she named you as a trustee.

Whether or not you were asked beforehand, you don’t actually become a trustee

until you accept the position; you can always decline to serve. Assuming you’ve

agreed to serve, go over that trust instrument with a ne-toothed comb and ask

the grantor’s attorney (or one of your choosing) for the answers to any questions

you have regarding the document itself or your role as trustee. This is no time to

be shy; just as with the rest of life, ignorance of the law is no excuse.

This chapter covers the role you’ve assumed, the duties you’ll be expected to carry

out, and the expectations others will have of you as a trustee. Read on, and enjoy

the condence the grantor has expressed in you!

IN THIS CHAPTER

»

Making sure that you understand the

trust instrument

»

Using your discretion to fulll the

grantor’s wishes

»

Keeping an eye on the assets and

their best uses

»

Staying on top of the paperwork