A Duty Checklist for The Trustee of A Trust

It's no misnomer that a position with so much responsibility carries the name "trustee".

After all, you have been entrusted with a solemn responsibility and you no doubt want to do the best possible job.


Here are 10 things to do when you are appointed trustee of a trust:


1.  Read the trust document, which sets out the rules that govern how you will manage and administer the trust. Be sure you understand the rules completely.


2.  Create a checking account for the trust. A separate checking account for the trust should be used to handle all expenses and income, and will enable you to track distributions and payments.


3.  Keep the beneficiary's best interests in mind. You have a fiduciary duty to all beneficiaries to perform your duties according to the law and in their best interest.


4.  Do not borrow from the trust.  You should never use the trust for your own personal needs.


5.  Provide an annual budget.. You will owe an accounting at least annually to all beneficiaries and anyone else with an interest in the trust.


6.  Invest the funds prudently. Diversify the portfolio among stocks and fixed income securities. Unless you are an investment professional, it is wise to get professional advice. (Talk to us about building your financial team!).


7. Understand the needs of the beneficiaries.  Stay in regular contact with the beneficiaries so you understand their needs.


8. Be aware of any conflict with public benefits. Be sure you are aware of any beneficiary receiving public benefits to ensure any distribution does not disqualify them from those benefits.


9. File income tax returns. You are required to file an annual income tax return on behalf of the trust.


10. Get advice. Call us at 650-761-0992 to ensure you are fulfilling your role as trustee correctly and legally.  All of our fees are flat fees, agreed to in advance, based on the size of the Estate.  If you are the trustee of a plan we created, you receive a free review session with us to ensure you know exactly how to handle things and up to a 50% discount on trust administration after the death of the Grantor.


If you have been named a trustee or an executor of an estate, you don't have to go it alone. We can help you understand and meet your legally required duties. Contact us now for more information.


This article is a service of Sky Unlimited Legal Advisory PC, Family Business Lawyer™.  We don't just draft documents, we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.  That's why we offer a Family Wealth Planning Session™, during which you will get more financially organized than you've ever been before, and make all the best choices for the people you love.  You can begin by calling our office at (650) 761-0992 today or book online to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session for FREE.


Like what you're learning?

Sign up for our weekly newsletter and get this knowledge directly through your email!


You can find more of our recent estate planning articles by clicking here.

Interest Areas

Having a will simply is not enough.  It doesn't guarantee the care of your children if the unthinkable happens!  See how we do it differently...

The strategies that are appropriate for protecting your assets are different for every family.  Check out our proven process that gives you peace of mind...

Our unique legacy process gives your loved ones a precious gift - a lasting expression of your love.  Find out what we offer with every plan...