What Does a Trustee of a Revocable Living Trust Do?

A trustee of a revocable living trust is responsible for managing the assets held in the trust during the lifetime of the person who created the trust (also known as the grantor). The grantor typically serves as the initial trustee of the trust, but they will need to name a successor trustee to take over if they become incapacitated or pass away.

The primary duties of a trustee of a revocable living trust include:

1. Managing trust assets: The trustee is responsible for managing the assets held in the trust, which can include real estate, investment accounts, and personal property. They must manage these assets in accordance with the instructions outlined in the trust document and in the best interests of the trust beneficiaries.

2. Making distributions: The trustee is responsible for making distributions to the beneficiaries of the trust according to the terms of the trust document. For example, the trust document may specify that a certain percentage of the trust assets should be distributed to the beneficiaries each year.

3. Paying bills and taxes: The trustee is responsible for paying any bills or taxes associated with the trust assets. This includes paying property taxes, income taxes, and any other debts or expenses associated with the trust.

4. Keeping accurate records: The trustee is responsible for keeping accurate records of all trust transactions, including income earned, expenses paid, and distributions made. They must also provide regular reports to the beneficiaries of the trust.

5. Managing the trust after the grantor’s death: If the grantor passes away, the trustee is responsible for managing the trust assets and making distributions to the beneficiaries in accordance with the terms of the trust document. They may also be responsible for managing any ongoing trusts that are created after the grantor’s death, such as trusts for minor children or trusts that provide for ongoing support for a disabled beneficiary.

It’s important to note that the trustee of a revocable living trust has a fiduciary duty to act in the best interests of the beneficiaries of the trust. This means that they must act with honesty, integrity, and transparency, and make decisions that are in the best interests of the beneficiaries. If the trustee breaches their fiduciary duty, they can be held personally liable for any damages that result.