Page 42 - Successor Trustee Handbook

Duty to control, maintain and preserve Trust property. You need to place
valuable personal property under your immediate control, like securities,
deeds, promissory notes, jewelry, valuable antiques, etc. You should take these
items and put them in a safe place or safe deposit box. You need to maintain,
repair and preserve certain Trust assets, such as real estate, and preserve
Trust principal by investing wisely (see the Chapter, “Investing Trust Assets”).
You also need to maintain insurance coverages on real estate and personal
property and be sure that they are updated to reflect current market values.

Duty to keep Trust property separate and identified as Trust property.
Trust property should properly be held in the name of the Trust. Your name
may appear on title as Trustee of the Trust, but Trust property should not be
held in your personal name alone (see the Chapter, “Maintaining Title to
Assets”). Be careful not to commingle Trust property with any of your own
personal property and assets.

Duty to follow the terms of the Trust and the laws governing Trust
administration. You should be familiar with the terms of the Trust and be sure
to carry them out (See the Chapter, “Reviewing the Trust (and Other Estate
Plan Documents)”). The laws governing Trust administration are discussed
generally throughout this Manual. If you have any doubt whatsoever as to
whether you are properly following the terms of the Trust and the laws
governing Trust administration, you should contact a qualified estate attorney
right away.

Duty to exercise the standard of care of a “prudent” person under like
circumstances. If you have special skills that should assist you in Trust
administration, such as an accounting, legal or business background, you may
be held to a higher standard based on those skills. Basically, you need to act
carefully and reasonably, regardless of your background and skills.

Duty of loyalty and impartiality. In taking actions as a fiduciary, you most
solely consider the interests of the Trust beneficiaries as a whole, and not your
interest as Trustee or as an individual beneficiary of the Trust. You must deal
with beneficiaries impartially, and not favor one over another, unless the Trust
provides otherwise. In particular, if you are also a beneficiary, you must take
great care not to even appear to favor yourself over other beneficiaries; the
slightest “appearance of impropriety” may cause you trouble even if you’ve
done nothing wrong. Also, when making investment decisions you must not
favor either the current beneficiaries or future or remainder beneficiaries,
unless the Trust directs you to (see the Chapter, “Investing Trust Assets”).

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