Trust & Estate Litigation · Haute Lawyer Network
What Are the Duties of a Trustee?
Last reviewed: June 2026
A trustee holds legal title to trust assets and manages them for the benefit of the trust's beneficiaries. This position of responsibility carries a comprehensive set of legal duties — collectively called fiduciary duties — that define how the trustee must act.
Failure to fulfill these duties is a breach of fiduciary duty, which can result in removal, personal liability for damages, and in extreme cases, criminal prosecution.
The core trustee duties are:
- Duty of loyalty — act solely in the interests of beneficiaries.
- Duty of prudent administration — manage assets as a prudent investor would.
- Duty to inform and account — keep beneficiaries reasonably informed and provide regular accountings.
- Duty of impartiality — balance the interests of different classes of beneficiaries fairly.
- Duty to keep trust property separate — never commingle trust and personal assets.
- Duty to follow trust terms — administer the trust as the grantor directed.
- Duty not to delegate improperly — while trustees can delegate investment management, they cannot delegate core trustee functions.
Frequently Asked Questions
Can a trustee also be a beneficiary?
Yes. It is common for a surviving spouse or adult child to serve as both trustee and beneficiary. However, the trustee-beneficiary must still act impartially toward other beneficiaries and cannot favor their own interest.
Can a trustee charge a fee for their services?
Yes. Trustees are entitled to reasonable compensation unless the trust document waives this right. Professional trustees and corporate trustees charge fees based on a percentage of assets under management.
What is a co-trustee arrangement?
When two or more people serve as trustees together, making decisions jointly. Co-trustee arrangements provide checks and balances but require coordination.
Can a trustee resign?
Yes. Trustees can resign by following the resignation procedure in the trust document or state law. They must account for their period of administration and cooperate in the transition to a successor.
What is a trust protector?
A person appointed in the trust document with specific powers — such as the ability to modify the trust, change trustees, or resolve disputes — who provides oversight and flexibility over the trust's lifetime.
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