Fiduciary Duties & Trustee Responsibilities
When someone dies or becomes incapacitated, the trust they created doesn’t administer itself. A successor trustee steps into a role with genuine fiduciary duties and real personal liability for mistakes — which is exactly why being named trustee, while often intended as a mark of trust and respect, should be treated as the serious responsibility it legally is, not simply accepted out of family obligation without understanding what it requires.
A trustee’s core obligation is the fiduciary duty: acting solely in the best interests of the trust’s beneficiaries, not their own, and administering the trust exactly according to its written terms rather than what the trustee personally believes the deceased would have wanted. This duty applies whether the trustee is a professional fiduciary or a family member serving for the first time, and courts hold both to essentially the same standard.
TRUST MANAGEMENT
Notifying beneficiaries that the trust has become irrevocable and administration has begun, as Pennsylvania law requires
Marshaling, securing, and valuing trust assets
Managing and investing trust property prudently while administration is underway
Paying the trust's valid debts, expenses, and any taxes owed
Keeping detailed, accurate records of every transaction — a trustee who cannot account for trust funds faces real personal exposure
Making distributions to beneficiaries strictly according to the trust's terms
Providing beneficiaries with periodic or final accountings
TRUST ADMINISTRATION
MOSTLY COMMON MISTAKES
Commingling trust funds with personal funds, even briefly or with good intentions
Distributing assets before confirming all debts, expenses, and taxes have been properly accounted for
Failing to diversify or prudently manage trust investments during the administration period
Favoring one beneficiary's interests over another's, even unintentionally
Failing to keep beneficiaries reasonably informed, which is itself frequently the trigger for a legal challenge, independent of whether the trustee's underlying decisions were sound
PROFESSIONAL ESTATE GUIDANCE
A WORD ON DIY WILLS
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