The duties of a Trustee are very broad and encompassing. Peak Trust Company has broken down the Trustee functions into three primary areas:
- Administrative Trustee
- Investment Trustee
- Independent Trustee
By using these terms, we are better able to designate what responsibilities a particular Trustee may have.
Obviously, Peak Trust Company would like to be the sole Trustee with all of these responsibilities, but, as stated previously, we realize that, in many cases, this will not be practical or desirable.
The following are our brief definitions of each type of Trustee’s duties in an effort to assist you in drafting appropriate language into your trust documents.
- Administrative Trustee – This Trustee holds the duties that are required by the state to ensure that the Trust qualifies as an Alaska or Nevada Trust. In summary, duties include maintaining some assets within this state, having the capabilities to maintain Trust records in Alaska or Nevada, file tax returns for the Trust and provide that a portion of the administration occurs in the jurisdiction.
- Investment Trustee – This Trustee has the authority to make the day-to-day decisions regarding the investment and management of the Trust assets.
- Independent Trustee – This Trustee has the authority to make distributions to the beneficiaries.
- Trust Protector – In addition to the Trustee, an important option (or position) is the Trust Protector. A trusted friend or advisor of the family is given the power to remove the Trustee and appoint new Trustees if there are none currently acting. Often, it is most advantageous to have a nonbeneficiary hold this position due to tax considerations and conflicting personal interests in the Trust. In some cases, more than one person will share this role.