So You’ve Been Named The Trustee Of A Trust, Now What?

So, you have been named as a trustee of a trust, and this comes with “powers.” What exactly does that entail? In this blog post, I will review the basics of the role of a trustee.

What are Trustee Powers?

The powers of a trustee of a trust can vary depending on the specific terms of the trust instrument and the laws governing the trust. Generally, the trustee has a range of powers and responsibilities related to managing the assets held in the trust and ensuring that the trust’s purposes and objectives are carried out.

Some of the typical powers of a trustee may include:

• Managing trust assets: The trustee has the power to manage, invest, and sell the assets held in the trust. This includes making decisions about when and how to buy and sell investments, as well as deciding how to distribute the income and principal of the trust to beneficiaries.
• Distributing trust assets: The trustee has the power to distribute trust assets to beneficiaries according to the terms of the trust. This may involve making regular distributions of income to beneficiaries or making one-time distributions of principal.
• Making decisions about the trust: The trustee has the power to make decisions about the trust, such as hiring professionals to assist with trust administration, making decisions about legal or tax matters, and determining how to respond to requests or challenges from beneficiaries.
• Protecting trust assets: The trustee has a duty to protect the assets held in the trust from loss or damage, which may involve taking steps to insure or safeguard those assets.
• Accounting and recordkeeping: The trustee has a duty to maintain accurate records of trust transactions and to provide regular reports to beneficiaries regarding the status of the trust.

The powers of a trustee are generally used to fulfill the trustee’s fiduciary duty to act in the best interests of the trust and its beneficiaries. The trustee must carefully balance the competing interests of different beneficiaries, and make decisions that are consistent with the terms of the trust instrument and applicable law.

The trustee is a fiduciary role, not to be taken lightly. Often, a trustee will seek advice from professionals, such as attorneys or accountants, to ensure that they are making informed decisions about the trust.

To learn more about your duties as a Trustee, contact Attorney Jill M. Santiago by clicking below.