Editing How to Act as a Trustee (section)

== Key Responsibilities of a Trustee ==

=== 1. Understand and Execute the Trust Terms ===

- Read and thoroughly understand the trust document3<ref name="ref15">15</ref>.
- Administer the trust strictly according to its instructions3<ref name="ref15">15</ref>.
- Seek legal advice if any terms are unclear[15].

=== 2. Manage Trust Assets Prudently ===

- Invest trust assets wisely to achieve reasonable growth with minimal risk[15].
- Keep trust property separate from personal assets3<ref name="ref15">15</ref>.
- Maintain accurate records of all transactions, income, and expenses3<ref name="ref15">15</ref>.

=== 3. Act as a Fiduciary ===

- Always put the beneficiaries' interests first3<ref name="ref5">5</ref>.
- Avoid conflicts of interest and self-dealing3<ref name="ref12">12</ref>.
- Treat beneficiaries impartially, unless the trust specifies otherwise3<ref name="ref12">12</ref>.

=== 4. Communicate with Beneficiaries ===

- Keep beneficiaries informed about trust administration3<ref name="ref15">15</ref>.
- Provide regular accountings and reports as required3<ref name="ref15">15</ref>.
- Answer beneficiaries' questions promptly and transparently[11].

=== 5. Handle Distributions ===

- Make distributions to beneficiaries as specified in the trust3<ref name="ref15">15</ref>.
- Exercise discretion in distributions when authorized, always considering the beneficiaries' best interests[15].

=== 6. Manage Taxes and Legal Matters ===

- File tax returns for the trust and pay any taxes due3<ref name="ref15">15</ref>.
- Defend the trust against claims and pursue claims on behalf of the trust when necessary12<ref name="ref20">20</ref>.

=== 7. Maintain Detailed Records ===

- Keep thorough documentation of all trust activities, decisions, and transactions3<ref name="ref15">15</ref>.
- Be prepared to provide accountings to beneficiaries or the court if required[12].