A trustee is responsible for managing and distributing trust assets based on the terms outlined in the trust document. A trustee can be:

• A family member or friend chosen by the trust creator.
• A professional trustee or fiduciary who specializes in estate management.
• A corporate trustee (such as a bank or trust company) for complex estates.

To fund a trust, you must formally transfer assets into it by:

• Retitling real estate in the trust’s name.
• Reassigning bank and investment accounts to the trust.
• Updating beneficiary designations on life insurance and retirement accounts.
• Transferring personal valuables (art, jewelry, vehicles) as per the trust terms.

A trustee has a legal and ethical responsibility to manage the trust assets fairly and in the best interest of beneficiaries. Key duties include:

• Following trust instructions exactly as outlined.
• Investing and managing trust assets responsibly.
• Distributing assets to beneficiaries as directed.
• Keeping accurate financial records and reporting to beneficiaries.

A trustee who fails to act in the best interests of the beneficiaries or mismanages trust assets can be:

• Held legally liable and removed by a court.
• Ordered to repay losses caused by mismanagement.
• Replaced with a new trustee chosen by the court or beneficiaries.

Yes, a trustee can be removed if they:

• Fail to follow the trust terms or act dishonestly.
• Show incompetence in managing assets.
• Create conflicts of interest with beneficiaries.
• Are unable or unwilling to serve as trustee.

Trustees are legally required to maintain detailed financial records and report to beneficiaries. Professional help may be needed for:

• Preparing annual trust accountings and tax filings.
• Ensuring trust distributions comply with state and federal laws.
• Resolving disputes among beneficiaries regarding trust management.

If beneficiaries believe a trustee is mismanaging assets, they should:

• Request an accounting of trust transactions.
• Consult an attorney to review trust documents and legal options.
• File a petition to remove the trustee if misconduct is proven.