The Primary Responsibilities of a Trustee

Vogel Consulting is an independent multifamily office offering an integrated approach to wealth management. Vogel Consulting provides a full suite of family office solutions in investment advice, tax and accounting, business consulting, and estate planning.

One of the roles of a family office is to work with and guide trustees in making the right decisions toward trust assets. An individual or firm given control and legal obligation to manage assets on behalf of the beneficiaries, a trustee is appointed by the trustor (the person who created the trust) or by court order. Primary responsibilities of a trustee include administration, investment, and distribution of trust assets. 

Administering trust assets can require a comprehensive knowledge of tax and fiduciary rules as well as securities management and real estate. The trustee maintains records, files tax returns and reports periodically to the beneficiaries. The trustee must segregate the trust assets from his or her property to avoid any disputes or liabilities in case of loss.

A trustee also is responsible for making prudent decisions when acquiring, investing, and selling assets so they remain profitable for the beneficiaries. When distributing assets, the trustee must be impartial and act in accordance with the terms of the trust. The beneficiaries cannot dictate the terms of the trust, nor can they persuade the trustee to change the terms.