Becoming a trustee is a big deal—and a big responsibility. Whether you expected it or not, you’re stepping into a role that involves managing someone else’s legacy and acting in the best interests of the people they care about. But what exactly does it mean to be a trustee, and what are you supposed to do next?
What Is a Trustee?
A trustee is the person named to carry out the instructions laid out by the person who created the trust (the "grantor"). You’re legally responsible for managing the trust’s assets and ensuring they’re used for the benefit of the beneficiaries — often family members, charities, or others the grantor named. This role comes with a fiduciary duty, which means you must act with integrity, good judgment, and undivided loyalty to the trust and its beneficiaries.
When Do You Become a Trustee?
Depending on the type of trust, you might assume the role under different circumstances:
- Upon the grantor’s incapacitation, whether temporary or permanent
- After the grantor’s death
- Immediately, if it’s an irrevocable trust that names you as the trustee.
- Understanding when you’re officially “on duty” is key because your responsibilities begin at that moment.
Your Five Core Responsibilities
Being a trustee doesn’t mean you’re expected to do everything yourself.
Here are the main things you’re in charge of:
- Act Prudently: You must handle the trust’s affairs as a reasonable and cautious person would manage their own. This includes making informed decisions, keeping records, and avoiding unnecessary risks.
- Follow the Trust’s Terms: Your job is to interpret and carry out the grantor’s wishes as written in the trust. That might involve distributing assets, managing property, or exercising discretionary decisions about who receives what and when.
- Be Loyal to the Trust: You’re not allowed to act in your own interest—ever. That means no borrowing from the trust, making personal deals, or doing anything that could be seen as self-serving. Your loyalty is to the beneficiaries and the intentions of the grantor.
- Stay Personally Involved: While you can and often should hire help for legal, financial, or tax matters, you can’t hand off the role of trustee itself. You need to be actively involved and informed, even if you delegate certain tasks to professionals.
- Report to the Beneficiaries: At least once a year, you’re required to provide an accounting to the beneficiaries. This includes details on how the trust is being managed, what income or distributions have occurred, and any significant actions taken.
What If You Can’t—or Don’t Want to—Serve?
Life happens. If you’re no longer able or willing to serve as trustee, whether due to time constraints, health, or just personal discomfort with the role, you’re not stuck. Most trust documents include provisions for appointing a successor trustee who can take over your responsibilities.
If you’re considering stepping down, review the trust document and speak with an attorney or the trust’s beneficiaries to ensure a smooth and legal transition. It’s better to be proactive than to risk mismanaging the trust due to uncertainty or burnout.
Final Thought
Being a trustee can feel overwhelming at first, but you don’t have to go it alone. With the right support and a clear understanding of your duties, you can navigate this role with confidence. If you have questions about serving as a trustee or appointing someone to help manage your own trust, reach out to a Curi Capital advisor today.
The opinions and analyses expressed in the article are based on Curi Capital, LLC's research and professional experience. The information and data in this article do not constitute legal, tax, accounting, investment or other professional advice. Investors should consult with their trusted professionals prior to taking any action.
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