Trustee Responsibilities in Massachusetts

What Does a Trustee Do?

Being named as a trustee is both an honor and an important responsibility.

If someone has chosen you to serve as trustee, it's because they trust your judgment, your integrity, and your ability to carry out their wishes. While the role comes with legal responsibilities, it doesn't mean you have to know everything or do everything yourself.

Many trustees work with attorneys, accountants, financial advisors, and other professionals to help administer the trust properly.

At the Law Office of Annette Baker, I regularly guide trustees through the administration process so they understand their responsibilities and have the support they need along the way.

A Thought from Annette

One of the questions I hear most often is, "What if I don't know how to be a trustee?"

The good news is that you don't have to have all the answers on day one.

A trustee's job isn't to know everything. It's to act honestly, responsibly, and in the best interests of the trust and its beneficiaries. When questions arise, experienced legal and financial professionals can help guide you through the process.

What Is a Trustee?

A trustee is the person or institution responsible for managing and administering the assets held in a trust according to the instructions contained in the trust document.

If you've created a Revocable Living Trust, you will usually serve as your own trustee during your lifetime. That means you continue managing your assets just as you always have.

If you become incapacitated or after your death, the successor trustee you've chosen steps into that role and carries out the responsibilities outlined in your trust.

Rather than making decisions based on what they think you might have wanted, your trustee follows the instructions you've already provided.

When Does a Successor Trustee Take Over?

For most Revocable Living Trusts, the successor trustee does not become responsible immediately.

Instead, they generally begin serving only if:

• You become incapacitated and are unable to manage your financial affairs.

• You resign as trustee.

• You pass away.

Until then, you remain in complete control of your trust and your assets.

What Are a Trustee's Responsibilities?

Every trust is different, but trustees commonly have responsibilities such as:

• Identifying and protecting trust assets.

• Managing trust property prudently.

• Paying appropriate bills, debts, and expenses.

• Maintaining accurate financial records.

• Communicating with beneficiaries when appropriate.

• Filing tax returns or working with tax professionals when required.

• Making distributions according to the terms of the trust.

• Acting fairly and impartially when multiple beneficiaries are involved.

A trustee must always follow the instructions contained in the trust document while acting in the best interests of the beneficiaries.

Does a Trustee Have to Do Everything Alone?

No.

Many people worry that accepting the role of trustee means they must become an accountant, investment advisor, tax professional, and attorney overnight.

That's simply not the case.

Trustees are often encouraged to seek professional guidance when appropriate. Working with experienced professionals helps ensure the trust is administered properly and can reduce the risk of costly mistakes.

As an estate planning attorney, one of my roles is helping successor trustees understand their responsibilities and navigate the trust administration process with confidence.

Choosing the Right Trustee

Choosing a trustee is one of the most important decisions you'll make when creating your estate plan.

The right trustee should be someone who is:

• Honest and trustworthy.

• Organized and responsible.

• Comfortable managing financial matters or seeking professional guidance.

• Able to communicate effectively with beneficiaries.

• Willing to carry out your wishes, even when difficult decisions must be made.

Sometimes that person is a family member or close friend.

In other situations, a professional or corporate trustee may be the better choice.

There is no single right answer. The best choice depends on your family, your assets, and the complexity of your estate plan.

Common Questions About Trustees

Can a beneficiary also serve as trustee?

Yes. In many cases, a beneficiary may also serve as trustee, provided the trust permits it and any legal requirements are satisfied.

Can a trustee be paid?

Yes. Depending on the terms of the trust and applicable law, trustees are often entitled to reasonable compensation for the services they provide.

Can someone decline to serve as trustee?

Absolutely. No one is required to accept the role of trustee. If the person you've named is unable or unwilling to serve, your trust should provide for a successor.

Can a trustee make whatever decisions they want?

No. Trustees must follow the terms of the trust and fulfill their fiduciary duties. They cannot simply distribute assets however they choose.

Let's Start the Conversation

You don't have to figure this all out on your own.

Whether you're creating your first estate plan, choosing the right trustee, or serving as a trustee for a loved one, I'm here to help you understand your options, answer your questions, and guide you through the process with confidence.

Estate planning isn't about filling out forms. It's about creating a plan that reflects your family, your values, and the future you want to create for the people you love.

I'd be honored to help you build a plan that gives you peace of mind and protects what matters most.

Schedule your complimentary Discovery Call today, or call (978) 922-2888 to get started.