A trustee’s most important duty is to administer the trust according to the trust contract. These duties are owed to the beneficiary. Trustees are acting in the best interest of both the grantor and the beneficiary and never in their own self interest.
Trustees must also avoid conflicts of interest. Conflicts of interest occur when the trustee uses the Trust’s property for his or her own profit or for any other purpose not exclusively defined by the trust contract.
| Trustee Duty | Duty Description |
|---|---|
| Administering the Trust | Manage all trust responsibilities according to contract. |
| Maintaining loyalty | Act only in the interest of beneficiaries. |
| Being impartial | Professionalism when dealing with more than one beneficiary. |
| Avoiding conflicts | No self-dealing— must keep a separation between trustee’s property and the trust property. |
| Controlling and preserving assets | Dispose of unproductive property. |
| Identifying assets | Keep trust properties separate from other properties. |
| Keeping Trust property separate | Trustees must keep the trust property separate from their own personal property. |
| Enforcing claims | If claims arise against other properties, trustees must enforce them. |
| Exercising prudent care | Using the “prudent person” standard, trustees use reasonable care in dealing with trust property. |
| Informing | Keep beneficiaries informed on the state of the trust properties. |
| Accounting and reporting | Provide periodical reports to beneficiaries. |
| Acting with good faith | Exercising due diligence and care when dealing with the Trust. |
* StateTrust does not provide fiduciary or trustee services, nor does it act as a fiduciary or trustee. StateTrust only serves as an intermediary in providing introductions to legal counsel and licensed trust companies that can provide fiduciary and trust services. Our services consist of managing the assets held in such trusts and legal entities.
Trust Topics