Page 22 - Successor Trustee Handbook

Actively take over management of Trust property. As Trustee, it is your
duty to manage the affairs of the Trust to the same degree as would a
reasonable, prudent person. This duty includes placing cash assets in interest-
bearing accounts, refraining from speculative investments, paying bills in a
timely fashion and maintaining proper records. You are permitted to delegate
some of these duties to responsible professionals and pay their reasonable
fees from the Trust. (For more details, see the Chapters, “Your Trustee Duties”,
“Your Liability as a Trustee”, “Maintaining Title to Assets, Transacting Business
and Paying Expenses”, “Investing Trust Assets”, and “Recordkeeping”).

You should be sure that all liability, fire, homeowner’s and personal
property insurance policies are (and continue to be) in force and effect
and have been “endorsed” to the Trust, naming you as Successor
Trustee. If there is no such insurance coverage on real and personal property,
you should consult with an appropriate insurance agent to review your needs
and obtain adequate coverage. (It’s probably a good idea to have an
insurance agent review all the coverages already in place, to be sure they are
adequate based on the current market values of assets.)

Do NOT withdraw or rollover any annuities, corporate retirement plan
benefits and IRAs without first seeking the advice of your attorney,
accountant and/or financial advisor. Premature withdrawal of these
assets, or even just moving them to another place or re-titling them, may
cause undue immediate income tax consequences, as well as may eliminate
certain estate tax planning alternatives. Note: There may have been a
required withdrawal of a portion of these in the year of death, so again you
should consult with these advisors.

Consult with an accountant, at the earliest possible time, to help you
establish a recordkeeping system. The accountant will not only need
organized information for tax purposes, but in the future you may be required
to provide an accurate accounting to the beneficiaries. (See the Chapter,
“Accounting to the Beneficiaries”). Usually, if you are the spouse of the
Trustor, you will not be required to provide an accounting to other family
members/beneficiaries of your income, expenses and transactions; the terms
of the Trust will need to be reviewed.

Refrain from making loans, gifts or distributions to or for the benefit of
anyone other than the Surviving Spouse, without first going over the Living
Trust document with an attorney and determining the extent to which such
loans, gifts or distributions are permitted and are advisable. In some cases,
the Trust document may require distributions of income or assets to be made
to beneficiaries shortly after the Trustor’s death. (See the Chapters,
“Reviewing the Trust” and “Making Distributions to the Beneficiaries”).

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