Trustee

The Trustee's primary job is to fulfill the wishes of the person who made the trust, called the "Grantor" or "Settlor." A trustee who deviates from the Grantor's wishes may be removed and personally surcharged if an interested person complains.

Florida Statatute §737.303, called "Duty to Inform and Account to Beneficiaries." Within thirty days after your acceptance of the trust, it is your responsibility to inform all beneficiaries in writing that you accepted the trust. You should also inform any bank or brokerage house holding trust assets.

First, a trustee is duty-bound to keep trust beneficiaries "reasonably informed" about the trust. Any time a beneficiary requests it, you must provide information about the assets of the trust and how you are administering it. This extends to "relevant information about the assets of the Trust and the particulars relating to administration." Even if they never request it, the statute still requires you to do a trust accounting once annually and again upon termination of the trust.

As trustee, you are obligated to manage the funds and to pay any costs associated with the trust and, upon the Grantor's demise, to pay out any expense necessary in administering his/her will.

Under Florida's so-called "Prudent Investor Rule," you are obligated to invest the proceeds prudently. I don't need to tell you how many trustees invest money as if it were their own funds and take unnecessary risks. The actual investment strategy is supposed to be governed by the Grantor's intent; i.e. whether the Grantor intended to benefit the income recipient or the remaindermen such as grandchildren. Where the trust was created in part to provide income and also contemplates leaving something to the grandchildren, a good blend between income securities and growth securities would seem to be in order. Where the trust is set up to provide for a person's health, welfare and best interests, some of the money should be immediately convertible to cash. Other monies will not be needed until the end of the trust. These may be invested in mutual funds or other growth vehicles since the money will not be needed right away. Trust funds must be invested prudently and conservatively. I always recommend that you consult a broker or other financial advisor who is familiar with trust accounts.