Given that there are many complex steps to go through once you have been named a successor trustee, it is important to understand your core duties that will guide all of your actions following your appointment.
Duty to be loyal: As the successor trustee, you have an obligation to the beneficiaries of the trust, which means you must act in their best interest; not your own.
Duty to be prudent: Since you are managing assets that were (or still are) the property of another, you must act responsibly with their assets. This means acting as a “reasonable person” would, given the circumstances.
Duty pertaining to investments: Similar to the above two duties, the successor trustee is required to review the trust’s investments and assets to ensure that these financial plans line up with the overall purpose of the trust, as well as its terms.
Duty regarding the distribution of assets: As the person managing the assets and property of the trust, you are required to follow the distribution terms of the trust, which may follow many different formulas. You should act reasonably and prudent while thinking of the interests of the beneficiaries when making a decision regarding distribution that is not clearly outlined in the trust.
Duty to render accounts: The successor trustee is also required to ensure that all of the trust’s annual federal or state tax filings are completed, as well as any other filing requirements.
Duty to separate property: Finally, you are not permitted to have any of the trust’s property put into your personal name. It must be kept separate.