While the Grantor or creator of a revocable trust is alive and competent, he or she is responsible for the administration of the trust. With death or incapacity of the Grantor, the successor Trustee has the duty to administer the trust, which could go on for generations if the trust is in the form of a dynasty trust.
Trustees have the duty to invest the trust assets prudently, or they may be able to delegate the investment responsibility to third parties if the trust instrument permits delegation of that function. Trustees have the duty to account for the earnings and expenses of the trust to the trust beneficiaries during the term of the trust. Trustees also have the duty to diversify trust assets so that there is not an overly large concentration of trust assets in one particular asset. Trustees further have the duty to file trust income tax returns (1041) annually, should the trust earn sufficient income.
Our practice advises and represents trustees in carrying out these duties.
We welcome you to contact Mark T. Neil & Associates for more information.