What are the duties of a trustee?

A trustee is an individual or corporate entity responsible for managing the assets of a trust to ensure that the terms of the trust are fulfilled. In California, the law governing trustees, known as the California Probate Code, sets out the duties of trustees. Generally speaking, these duties include: 1. Investing trust assets prudently. This includes researching potential investments, understanding the risks and rewards associated with each, and making informed decisions about which investments to make. 2. Keeping accurate records. Trustees must keep track of all assets of the trust, any income they generate, and any distributions made from the trust. 3. Obtaining and protecting property. Trustees are required to protect the trust’s assets from damage, loss, or theft, as well as to take any necessary steps to obtain any trust property that may be missing or inaccessible. 4. Making prudent distributions. Trustees must determine who is entitled to distributions from the trust, and if appropriate, make these distributions according to the trust document. 5. Paying taxes. Trustees are required to pay all applicable taxes due on the trust’s income, as well as any taxes, duties, or fees owed on the trust’s assets. 6. Keeping beneficiaries informed. Trustees must keep the trust’s beneficiaries informed of their rights, the trust’s progress, and any changes in the trust’s assets or distributions. 7. Fulfilling other duties as specified in the trust. Depending on the terms of the trust, trustees may have additional duties and responsibilities. By fulfilling the duties of trusteeship, trustees are able to uphold the intentions of the trust setter and ensure that the trust’s assets are managed according to their wishes. As trustees are fiduciaries, they are held to a high standard of care, and as such, must take all necessary steps to fulfill their duties.

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