What Does a Trustee Actually Do?

A trustee is an individual or entity appointed to manage and administer assets or property on behalf of others, known as beneficiaries. The trustee holds legal title to the assets or property and is responsible for managing them in accordance with the terms of a trust agreement or other governing document. Here are some key responsibilities and duties of a trustee:

  • Asset Management: The trustee has the duty to prudently manage and protect the assets or property held in the trust. This includes investing funds, maintaining real estate, managing business interests, and making financial decisions in the best interests of the beneficiaries.
  • Fiduciary Duty: A trustee owes a fiduciary duty to the beneficiaries, which means they must act in the best interests of the beneficiaries and exercise their powers and discretion with care, loyalty, and honesty. They are expected to avoid conflicts of interest and make decisions solely for the benefit of the beneficiaries.
  • Distribution of Trust Assets: The trustee is responsible for distributing trust assets to the beneficiaries according to the terms of the trust. This may involve making periodic distributions, one-time payments, or fulfilling specific conditions or requirements set forth in the trust document.
  • Record-Keeping and Reporting: A trustee must keep accurate and detailed records of the trust’s financial transactions, investments, and distributions. They may be required to provide periodic reports to the beneficiaries, providing transparency about the trust’s activities and financial status.

At the end of the day, a trustee plays a vital role in ensuring the proper administration of a trust. We are here to answer any questions you may have about estate planning, the estate planning process, or your specific situation. Together, we can craft a one-of-a-kind plan to ensure that you and your family are properly protected. Contact us today at 424-242-5021.

Nothing in this article should be construed as legal advice. For specific guidance regarding your situation, please contact an attorney.