Page 29 - 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. Should there be 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 ones already in place too, to be sure they
are adequate based on the current market values of assets.)

Consult with an accountant, at the earliest possible time, to help you
establish a recordkeeping system, as the accountant will not only need
organized information for tax purposes, but you may in the future be required
to provide an accurate accounting to the beneficiaries. (See the Chapter,
“Accounting to the Beneficiaries”).

Refrain from making loans, gifts or distributions to or for the benefit of
anyone, 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”).

Check with the attorney as to the advisability of your executing a “HIPAA
Authorization” and providing it to the next Successor Trustee, in the event
you are unable to act at some time in the future. (See the Chapter, “Transition
to Another Trustee”).

26