Page 41 - Successor Trustee Handbook

CHAPTER 9

YOUR TRUSTEE DUTIES

As a Trustee, you have the legal status of a “fiduciary.” What this means is that
you are acting on behalf of others (the Trust beneficiaries) and you owe to them
certain legal duties. Another way to look at this more simply is that, as a Trustee,
you have been placed in a position of “trust.”

The extent of your duties depends somewhat on the language of the Trust
document itself. However, regardless of the Trust document, most states impose
certain legal duties or obligations upon you in their laws, often known as their
“fiduciary”, “trust administration or “probate” statutes. Keep in mind that both the
Trust document and specific state law may need to be consulted (which is
another reason you may want to engage an attorney to assist you).

The checklist below is intended as only a very general and brief overview of your
major Trustee duties. Also, be aware that we have not included, in the checklist
below, certain other duties that are described elsewhere throughout this Manual.
If this checklist of duties seems a bit overwhelming, just remember that you will be
fine so long as you exercise some good, honest common sense and seek qualified
professional advice whenever you are unsure of your duties.

Your Trustee duties include, but are not limited to:

Duty to identify and locate Trust assets. If you are also acting in the
capacity of the executor under the Trustor’s Will (which “pours over” assets into
the Trust if they weren’t transferred into it during the Trustor’s lifetime) you
must also identify and locate any assets which the Trustor may have had
outside of the Trust. You may want to consult with the Trustor’s attorney, CPA,
financial advisor and other professional advisors to help identify and locate all
the Trustor’s assets. Also, if the Trust was prepared by Family First Firm, you
should look for the Trustor’s “Estate Planning Portfolio”. You should receive
and review all of the Trustor’s mail, which may contain statements of assets,
property tax bills, and other documentation that may evidence the existence
of assets. You should search the home, safe deposit box, and any other
known “hiding places” for lists of assets, statements, certificates, deeds,
promissory notes, and valuable personal property like jewelry. Look at the
Trustor’s insurance coverage for a list of any valuables as well. You should, as
soon as possible, make a list of all valuable items in the Trustor’s home (not
necessarily every little item), just in case others decide to start “borrowing”
things!

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