Trustee Duties Co Trustees Responsibilities

Carrying out a trust administration is not always an easy process. At first glance, it may seem that trusts with multiple trustees acting together may help to alleviate some of that burden. Unfortunately, that is not always the case. Co-trustees must understand their responsibilities and work together for a smooth trust administration.

Co-Trustee Responsibilities:

What are some of the responsibilities of co-trustees? The following is an overview:

1. Management of trust assets. This may include opening and closing bank accounts, investing trust funds in stocks or other assets, and buying and selling property. The trustees are also responsible for keeping accurate records of the trust assets and providing regular accountings to the trust’s beneficiaries. When multiple trustees serve simultaneously, the trust document may place one specific trustee in charge of this duty. If the trust does not specify one trustee to fill this role, both must act together and agree when managing the trust’s assets.
2. They are filing all necessary tax returns. That is true on a federal, state, and local level. Trusts may be responsible for estate taxes as well as income taxes. Trustees are responsible for ensuring that taxes are paid and filed on time. Unless the trust instrument states otherwise, co-trustees are equally accountable for carrying out this duty and must act together. However, it is essential to note that co-trustees may seek assistance from an accountant or tax attorney.
3. Distributing assets to the beneficiaries. Co-trustees are r responsible for overseeing and distributing these assets as outlined in the trust instrument. This process may be more complicated than simply writing a check, as some beneficiaries may be minors, or the trust may give specific instructions, such as having distributions made directly to educational institutions for the beneficiary’s benefit. Regardless, the c -trustees must work together to accomplish this critical task unless the trust document gives this authority only to one trustee.
4. Cooperation with co-trustees. All trustees must act in the best interest of the trust’s beneficiaries, which requires collaboration among the trustees. That is especially true when the co-trustees must work together to accomplish the trust administration tasks.

Do you want to know more about your Co-trustee’s responsibilities?

When it comes to Trust Litigation, it is better to be direct. The longer you wait, the worse your situation can get.

The Grossman Law Firm knows that Trust Litigation can be complex if you have any additional questions about trust litigation or want a comprehensive overview of California Probate. You will find plenty of helpful and valuable information on our California Probate Resource Page and our Learning Center. Such as knowing if your Trustee has breached their duty, “20 ways your Trustee can be breaching their fiduciary duties.” 

If you are ready to start your case, then please give us a call or fill out our Get Help Now form.