What is involved in becoming the Trustee of an estate?

Assuming the role of Trustee should only occur following careful consideration of the responsibilities that accompany this function. A Trustee has many duties, including a mandate to follow the terms of the trust and the laws that govern the administration of trusts. This responsibility requires careful review and a thorough understanding of the trust instrument prior to accepting the Trustee position, as well as a willingness to seek appropriate counsel and advice regarding the trust administration, as it becomes necessary. 

What duties are required of a Trustee?

A Trustee is required to conduct all trust-related activities in accordance with the terms of the trust and all relevant California laws solely for the benefit of the beneficiaries. Other duties include:

• Avoiding conflicts of interest and transactions with the trust that will personally benefit the trustee
• Taking control of trust assets and taking reasonable steps to preserve them
• Keeping the assets and debts of the trust separate from the Trustee’s own
• Taking actions to prevent a loss to the trust (e.g., defending a lawsuit)
• Providing financial and other information to beneficiaries

How is a Trustee compensated?

The Trustee’s compensation is first determined under the terms of the trust; however, if the trust does not provide for compensation, then compensation is determined under the provisions of the California Probate Code. Generally, a trust instrument will provide a Trustee with reasonable compensation. A trust instrument occasionally will fix the compensation. The California Probate Code provides that if the trust instrument does not specify the Trustee’s compensation, then the Trustee is entitled to reasonable compensation under the circumstances. An attorney is generally compensated by agreement with the Trustee.