For those of you who have already accepted the responsibility of acting as a successor trustee, or for those who are considering that responsibility, the following descriptions of the statutory requirements of a trustee may provide answers to certain questions or concerns you have regarding the position of the successor trustee.

A successor trustee has a duty to administer the trust according to the trust instrument and sections of the Probate Code (sec. 16000 et seq.). Some of those duties include:

1. Duty of Loyalty. A trustee has a duty to administer the trust solely in the interest of the beneficiaries (Prob. C. sec. 16002). A trustee has a duty to deal impartially with two or more beneficiaries, particularly in investing and managing the trust property, taking into account any differing interests of the beneficiaries (Prob. C. sec. 16003).

2. Conflicts of Interest. "The trustee has a duty not to use or deal with trust property for the trustee's own profit or for any other purpose unconnected with the trust, nor to take part in any transaction in which the trustee has an interest adverse to the beneficiary" (Prob. C. sec. 16004).


3. Productivity of Trust Property. The trustee must make trust property productive, unless otherwise directed by the trust instrument (Prob. C. sec. 16007).


4. Separation of Property. The trustee must keep trust property separate from other property not subject to the trust, including his own property (Prob. C. sec. 16009).


5. The trustee must take reasonable steps to enforce claims of the trust and defend actions that may result in a loss to the trust (Prob. C. sec. 16010-16011).


6. Standard of Care. "The trustee shall administer the trust with reasonable care, skill, and caution under the circumstances then prevailing that a prudent person acting in a like capacity would use in the conduct of an enterprise of like character and with like aims to accomplish the purposes of the trust as determined from the trust instrument" (Prob. C. sec. 16040).


7. Investments. The trustee shall exercise reasonable care, skill, and caution. The trustee shall consider the following in investing and managing trust assets: a) general economic conditions, b) the possible effect of inflation or deflation, c) the expected tax consequences, d) the expected total return from income and the appreciation of capital, e) other resources of the beneficiaries known to the trustee (Prob. C. sec. 16047). "In making and implementing investment decisions, the trustee has a duty to diversify the investments of the trust. . ." (Prob. C. sec. 16048).


8. Duty to Inform. The trustee must keep the beneficiaries reasonably informed of the trust and its administration (Prob. C. sec. 16060).

This web site is designed for general information only. Michael F. Sweeney is licensed to practice law in the State of California only, and any information contained in this web site is based on principals of California law. The information presented at this site should not be construed to be formal legal advice nor the formation of an attorney-client relationship.

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