Trustee
Trusts provide an explicit list of responsibilities and powers for both the initial trustees and successor trustees. For all the assets that are managed by the trustee(s), accurate records must be kept.
Accounting
The Trustee shall keep and maintain adequate books and records reflecting all income and principal transactions, which books and records shall be open at all reasonable times to the inspection of the Co-Trustors and to their duly authorized representatives. The Trustee shall furnish at least annual statements for all transactions to the then income beneficiaries of the trust or to the natural or legal guardians of such beneficiaries.
Trusts typically allow for the trustee to hire a professional bookkeeper or accountant if needed.
Trustees can perform a wide range of tasks, including but not limited to:
- Power to Retain Trust Property and Comply with Existing Agreements
- Power to Manage Trust Property
- Invest
- Retain Trust Property without Diversification
- Retain Unproductive Property
- Borrow
- Manage Securities
- Partition, Allot and Distribute
- Determine Principal and Income
- Distribute Income
- Employ Counsel
- Distribute to or for the Benefit of Minor or Disabled Beneficiary
- Pay Taxes
- Lend
- Commence or Defend Litigation and to Compromise
- Delegate
- Insure
Investing
The Trustee shall have full power to invest and reinvest the principal and to purchase or acquire therewith every kind of property, real or personal, and every kind of investment, specifically including, but not by way of limitation, commodities of every nature, corporate obligations of every kind, precious metals such as gold or silver, and stocks, preferred or common, and to buy stocks, bonds, commodities and similar investments on margin or other leveraged accounts and to short sell such accounts, and to buy, sell and write stock and other security options, and to enter into commercial partnership as a partner, limited or general, and to operate any business as a sole proprietor. To open, operate and maintain a securities brokerage account wherein any securities may be bought and/or sold on margin, and to hypothecate, borrow upon, purchase and/or sell existing securities in such account as the Trustee may deem appropriate or useful.
Borrowing
To borrow money for any trust purpose upon such terms and conditions as the Trustee may deem proper, and to obligate the trust estate by mortgage, deed of trust, pledge, or otherwise, using such procedure to consummate the transaction as the Trustee may deem advisable and to pledge the assets of the trust estate to secure the guarantee by the Co-Trustors of the debts of third parties.
Insuring
The Trustee shall have full power to carry insurance of such kinds and in such amounts as the Trustee deems advisable, at the expense of the trust, to protect the trust estate and the Trustee personally against hazard.
