California Trustee Duties: Here’s What You Should Know (Pt. 2)

December 20, 2014

Resuming California Trustee Duties: Here’s What You Should Know (Pt. 1), here, we will continue highlighting some of the primary responsibilities that trustees have when administering trusts in California.

California Trustee Duties: Managing the Assets of the Trust

California Trustee Duties: Here’s What You Should Know
Managing the assets of a trust and maintaining accounts for the trust are two crucial California trustee duties that can require some professional help.
When it comes to overseeing the assets of a trust, the terms of the trust should detail:

  • The nature and value of the investments that trustees can (and cannot) make on behalf of the trust

  • The nature of payouts made from the proceeds of the trust (including the frequency of these payouts)

  • How the expenses of the trust are to be paid for.

What this specifically means for trustees is that they are required to:

  • Make the assets of the trust productive (by making sound investments)

  • Manage the assets of the trust as a prudent investor would

  • Consider the context of the trust’s portfolio, as well as the interests of the beneficiaries, when developing and implementing investment strategies for the trust

  • Exercise a reasonable level of caution and care when overseeing and investing the assets of the trust

  • Understand and act in compliance with the Uniform Prudent Investor Act.

California Trustee Duties: Accounting Responsibilities

When it comes to trustee duties pertaining to accounting for the trust, the general rule is that trustees are required to keep the beneficiaries of the trust reasonably informed about the financial transactions, investments, etc. of the trust. In practice, this can end up meaning that trustee duties regarding accounting for the trust can specifically include (but may not be limited to):

  • Reporting the assets, liabilities, income and disbursements of the trust to the beneficiaries upon their reasonable request for this information

  • Reporting on the financial activities of the trust at least once a year, as well as when the trust ends and when a trustee steps down and a new trustee takes his place

  • Maintaining accurate, up-to-date accounting records for the trust (this can be an endeavor that may require some professional oversight, particularly if trusts have substantial assets).

For some final important info about California trustee duties, be sure to look for the conclusion to this blog series that will be posted soon!

San Fernando Trust Administration Attorney at the Law Offices of Darrell C. Harriman

Do you need help administering a trust? If so, the trusted San Fernando trust administration attorney at the Law Offices of Darrell C. Harriman is here for you. For more than 34 years/three decades, our San Fernando trust administration attorney has been dedicated to providing his clients with personalized, highly responsive service, as well as superior representation for their important legal matters.

Let’s talk about your case and legal needs today. You can contact our firm by calling (818) 892-7093 or by filling out the contact form on this page.

From our offices based in North Hills, we provide the highest quality legal services to our clients throughout the San Fernando Valley, Simi Valley, Santa Clarita and the greater Los Angeles area.

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