If the person (or entity) named by you as Trustee agrees to serve, that person (or entity) has certain legal duties. In brief, these duties are as follows:
- Good Faith. The Trustee must abide by the terms of your trust agreement.
- Loyalty. The Trustee must make decisions for the benefit of the beneficiary or beneficiaries, not for personal gain.
- Impartiality The Trustee must take steps to treat each beneficiary impartially.
- Reasonably Prudent Administration. In making investment and tax-related decisions, the Trustee must act as a “reasonably prudent person.”
- Protect and Control. The Trustee must take steps to protect the assets of the trust from loss and oversee safekeeping.
- Accurate Accounting. The Trustee must never mix (“commingle”) trust assets with personal assets, and must keep an accurate financial record (“accounting”) of trust assets.
- Keep Beneficiaries Informed. The Trustee must keep the beneficiaries of the trust reasonably informed of the progress of the administration of a trust.