Trustees have a variety of critical duties. Failure to fully carry out these duties can result in legal liability for the trustee. Trustee duties fall into three general categories: to the trust itself, to the beneficiaries, and personal duties. Today I’ll address some of the duties a Trustee has towards the Trust itself.
The major role of the trustee is to abide by the terms of the trust. Before accepting an appointment as trustee, the trustee should read all trust documents thoroughly. If the perspective trustee believes they cannot, for whatever reason, execute the terms of the trust or act without conflict of interest, they should not accept the appointment. The terms must be followed. A trustee is also liable for keeping records and protecting the privacy of the trust. The trustee should begin keeping internal memos from the very beginning. These notes should describe all actions and the details of all decisions.
A trustee has similar duties with a revocable trust, which can be altered or terminated during the grantor’s lifetime. It is crucial that all written directions and modifications are followed, such as directions for personal property or to rename the successor trustee. If the material purpose of the trust is affected there are additional requirements. Whenever a trustee is in doubt about the legal ramifications of their actions he should always consult an attorney.
A professional who offers trustee assistance can help clarify and assist with trustee duties. Contact Lindsay Leonard of Santa Barbara Estate Services at www.SantaBarbaraEstateServices.com if you or someone you know is an executor or trustee who needs this kind of support.
