What are Some Trustee Duties?

Duty to segregate trust property - The Trustee can not commingle his personal property with the trust property. There may be a presumption in favor that the property is trust property when commingling has occurred.

Duty to Account to beneficiaries – The Trustee is responsible to account to the beneficiaries of a trust. This is often a major issue for beneficiaries. Quite frequently Trustees may not account to their beneficiaries in violation of their duty to do so. This may give rise to trustee liability to the beneficiaries. Make sure you protect your interests.  

Duty not to engage in self dealing – The Trustee can not buy or sell trust assets to himself/herself. The Trustee can not borrow trust funds. The Trustee can not take advantage of their position as trustee or engage in any transaction in which he/she seeks to secure personal gain. This may be a very serious breach of the trust. Make sure you protect your interests.



What are Some Trustee Powers?

A trustee may make investments on behalf of the trust. The investments must be reasonably prudent and consider a duty of preservation of the principal (corpus) and income.  In addition there is generally a duty to diversify the investments and not to speculate with regards to the investments. Finally the investments will be subject to a business judgment standard.  

If you are a beneficiary of a trust and have issues with the trustee, be advised you have legal rights and should consult with an attorney. Far too often people will lose their inheritance by not taking any preventative actions against a trustee who is really looking out for their own interests and not the interests of the beneficiaries.  Please feel free to contact us for more information.



What are Some Grounds for Removal of a Trustee?

1. Breach of Trust.

2. Incapacity to Administer the Trust.

3. Unfitness for the Position of Trustee.

4. Refusal to Provide an Accounting to the Beneficiaries.

Please feel free to contact a lawyer in our Orange county office for more information.