How To Be An Effective Trustee


If a family member or friend has asked you to serve as trustee for their trust either during their life or upon their death, it’s a big honor—this means they consider you among the most reliable and responsible people they know.

That said, serving as a trustee is not only a great honor, it’s also a major responsibility. Serving as a trustee entails a broad array of duties, and you are both ethically and legally required to properly execute those duties.

You don’t have to take the job of serving as trustee. Depending on who nominated you, declining to serve may be easy or practical option. On the other hand, you might actually enjoy the opportunity to serve, so long as you understand what’s expected of you.With this in mind, here we’ll give you a brief overview of what serving as a trustee typically entails. For help in making your decision.

A Trustee’s Primary Duties Although every trust is different, serving as trustee comes with a few core requirements. These duties primarily involve accounting for, managing, and distributing the trust’s assets to its named beneficiaries. This makes you the fiduciary. As the fiduciary you are legally required to properly manage the trust and its assets in the best interest of all the named beneficiaries. And if you fail to abide by your duties you could face legal liability. For this reason, you should consult with us for a more in-depth explanation of the duties and responsibilities a specific trust will require of you before agreeing to serve.

But regardless of the trust or the assets it holds, some of your key responsibilities as trustee include:

  • Identifying and protecting the trust assets

  • Determining what the trust’s terms require in terms of management and distribution of the assets

  • Hiring and overseeing an accounting firm to file income and estate taxes for the trust

  • Communicating regularly with beneficiaries

  • Bringing in the right investment management team to manage the trust assets

  • Being honest, highly organized, and keeping detailed records of all transactions

  • Closing the trust and distributing the assets when the trust terms specify

Experience NOT Required It’s important to point out that being a trustee does NOT require you to be an expert in law, finance, taxes, or any other field related to trust administration. In fact, trustees are not only allowed to seek outside support from professionals in these areas, they’re highly encouraged to do so, and the trust estate will pay for you to hire the support you need.

So even though serving as a trustee may seem like a daunting proposition, you won’t have to handle the job alone. And you are also able to be paid to serve as trustee of a trust should you choose to accept the role.

We’re Here To Help Because serving as a trustee involves such serious responsibility, you should meet with us for help deciding whether or not to accept the role. We will offer you a clear, unbiased assessment of what’s required of you based on the specific trust’s terms, assets, and beneficiaries.

And if you do choose to serve, it’s even more important that you have someone who can assist you with the trust’s administration. At Truest Law, we will guide you step-by-step throughout the entire process, ensuring you properly fulfill all of the trust creator’s wishes without exposing the beneficiaries—or yourself—to any unnecessary risks. Contact us today to learn more.




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