Establishing a Trust—What is the Role of the Trustee

Acting in the role of a trustee is not an easy position. The specific powers and responsibilities depend on the instructions in your trust documents. Although important, the prudent investment of trust assets is not a trustee’s only responsibility. Generally, a trustee will have the following duties:

• Invest the trust assets
• Hold trust property
• Distribute trust income and/or principal to the named beneficiaries, as
  Described in the trust agreement
• Make tax decisions concerning the trust
• Maintain records of all transactions
• Provide statements of account and tax reports to the trust beneficiaries
• Answer any questions of the beneficiaries concerning the trust

The role of the trustee may be broad or have limited powers. The trustee is a fiduciary and must follow a strict standard of care when performing trust functions.