What Duties Does a Trustee Have?

Understanding the Role of a Trustee in Kansas Estate Planning

When creating a trust, one of the most important decisions you’ll make is choosing the right trustee. A trustee has significant legal and financial responsibilities, and selecting the wrong person—or failing to understand what the role entails—can create unnecessary complications for your loved ones.

At Minter & Pollak, we frequently answer questions from clients throughout Kansas about what a trustee does, when a trustee begins serving, and what legal obligations come with the position. Whether you’re creating a revocable living trust or have recently been named as a trustee, understanding these responsibilities is essential to ensuring a trust is administered properly.

What Is a Trustee?

A trustee is the individual or institution responsible for managing and administering a trust according to its terms and in the best interests of its beneficiaries.

When you establish a revocable living trust, you typically serve as your own trustee while you are alive and competent. You also name a successor trustee who takes over if you become incapacitated or after your death.

Unlike an executor, whose authority generally begins after death through the probate process, a successor trustee often administers assets without court supervision, making the trustee’s role especially important.

What Are a Trustee’s Duties?

Kansas trustees have a fiduciary duty to act honestly, prudently, and solely in the interests of the trust beneficiaries. This means they must place the beneficiaries’ interests above their own and follow both the trust document and applicable Kansas law.

Some of the trustee’s primary responsibilities include:

1. Protecting Trust Assets

A trustee must identify, collect, safeguard, and properly manage all assets owned by the trust. The trustee should ensure that assets are properly insured, maintained, and protected from unnecessary loss. Trust assets may include:

• Real estate
• Bank accounts
• Investment portfolios
• Business interests
• Personal property
• Digital assets

2. Following the Terms of the Trust

One of the trustee’s most important obligations is to carry out the instructions contained in the trust document. A trustee cannot simply divide assets based on personal opinions or family pressure. Instead, the trustee must administer the trust exactly as the grantor intended unless otherwise required by law.

3. Acting in the Best Interests of the Beneficiaries

Trustees owe beneficiaries a fiduciary duty of loyalty and impartiality. A trustee who violates these duties may be held personally liable for resulting losses. This means they should:

• Avoid conflicts of interest
• Treat beneficiaries fairly
• Make prudent financial decisions
• Avoid self-dealing
• Keep trust property separate from personal assets

4. Keeping Accurate Records

Good recordkeeping is one of the hallmarks of a responsible trustee. Clear documentation helps prevent misunderstandings and demonstrates that the trustee fulfilled their obligations. Trustees should maintain records of:

• Income received
• Expenses paid
• Investment activity
• Property sales
• Distributions to beneficiaries
• Tax filings

5. Communicating with Beneficiaries

Beneficiaries are generally entitled to certain information regarding the administration of a trust. Open communication often helps reduce disputes among family members. Depending on the circumstances, a trustee may need to:

• Notify beneficiaries of the trust administration
• Provide accountings
• Respond to reasonable requests for information
• Explain distributions

6. Paying Debts and Expenses

After the trust creator’s death, the trustee may be responsible for paying legitimate debts and administrative expenses from trust assets before making distributions. Proper administration helps ensure beneficiaries receive distributions in accordance with the trust’s terms. Trust expenses may include:

• Funeral expenses
• Outstanding bills
• Property maintenance
• Professional fees
• Taxes owed by the trust

7. Filing Required Tax Returns

Depending on the trust and its assets, a trustee may need to:

• Obtain a federal Employer Identification Number (EIN)
• File fiduciary income tax returns
• Coordinate with accountants
• Provide tax information to beneficiaries

Trust administration often requires coordination among attorneys, accountants, and financial advisors.

8. Distributing Trust Assets

Once debts, expenses, and taxes have been addressed, the trustee distributes the remaining trust assets according to the trust instructions. Some trusts require immediate distributions. The trustee must continue managing the trust until all obligations have been satisfied. Until the Trust is terminated the Trustee provides ongoing asset management for:

• Minor children
• Individuals with disabilities
• Spendthrift beneficiaries
• Blended families
• Long-term charitable planning

Can a Trustee Be Personally Liable?

Yes. Because trustees serve in a fiduciary capacity, they may be held personally liable if they:

• Mismanage trust assets
• Engage in self-dealing
• Ignore the trust terms
• Fail to keep proper records
• Make improper distributions
• Neglect their fiduciary duties

Fortunately, most trustee problems can be avoided through proper legal guidance and careful administration.

Who Should You Choose as Trustee?

Choosing the right trustee is just as important as creating the trust itself. Many people select:

• A spouse
• An adult child
• A trusted family member
• A close friend
• A professional fiduciary
• A corporate trustee

The best trustee is someone who is:

• Honest
• Organized
• Financially responsible
• Able to communicate effectively
• Willing to devote the necessary time
• Comfortable making difficult decisions

Many people are hesitant to name a professional fiduciary, corporate trustee or bank trust department as they worry about the costs, but often the costs are less than people expect. Naming a neutral third party can also ensure that your wishes are complied with and almost always reduce family conflict.

Kansas Trust Laws Matter

Kansas has adopted the Kansas Uniform Trust Code, which governs many aspects of trust creation, administration, trustee powers, beneficiary rights, and fiduciary responsibilities. While the law provides trustees with certain powers, it also imposes strict duties that must be followed throughout the administration of the trust. Because every trust is different, trustees often benefit from legal advice to ensure they are complying with both the trust document and Kansas law.

How Minter & Pollak, LC Can Help

Serving as a trustee can be both an honor and a significant responsibility. Whether you are creating a trust, selecting a trustee, or administering a loved one’s trust, experienced legal guidance can help you avoid costly mistakes.

At Minter & Pollak, LC, we help clients throughout Kansas with:

• Revocable living trusts
• Trust administration
• Trustee guidance
• Estate planning
• Probate avoidance strategies
• Asset protection planning

Our attorneys work closely with trustees and families to ensure trusts are administered efficiently, legally, and according to the grantor’s wishes.

We are committed to helping Kansas families protect their assets, preserve their legacies, and provide peace of mind for future generations. If you have questions about trustee responsibilities or need assistance with trust administration, contact Minter & Pollak Law Firm at 316-265-0797 or click here to schedule a free consultation to create a plan that protects your family’s future.

Frequently Asked Questions

Does a trustee own the trust property?

No. A trustee holds legal title to trust property solely for the benefit of the trust beneficiaries. The trustee must manage the assets according to the trust’s terms and applicable law.

Can a trustee pay themselves?

In many cases, yes. Trustees are often entitled to reasonable compensation if permitted by the trust document or applicable law. The amount should be appropriate for the work performed.

When does a successor trustee take over?

For a revocable living trust, a successor trustee generally begins serving when the original trustee becomes incapacitated or passes away, as provided in the trust document.

Photo by Karolina Grabowska on Unsplash.