The Key Responsibilities of a Trustee

When someone is appointed as a trustee, they take on a significant legal and ethical responsibility to manage trust assets in the best interest of the beneficiaries. This is known as a fiduciary duty, which includes several key obligations. First, a trustee must act with loyalty, ensuring that all decisions are made solely for the benefit of the beneficiaries without any personal gain. Second, they have a duty of prudence, meaning they must manage trust assets responsibly, making informed and careful investment decisions. Additionally, trustees must follow the terms of the trust document, keeping accurate records and providing necessary reports to beneficiaries. Breaching these duties can lead to legal consequences, so it’s crucial for trustees to fully understand their role. If you’ve been named a trustee or are considering who to appoint, consulting with an estate planning attorney at Schuitmaker Moraitis Law can help ensure the trust is properly administered.