"I am grateful for the security that Covenant Trust provides for me and for others."
Doris L. Olson
Mercer Island, WA
Choosing Your Trustee
There are significant responsibilities in being a trustee. It requires expertise and knowledge that individuals may not always possess, and the consequences of inadequate or incompetent trustee services can be significant to all parties involved.
The trustee has specific duties:
- Take possession of and maintain control of fiduciary (trust) assets
- Collect amounts due and pay expenses
- Keep fiduciary assets separate and distinct from all other assets
- Maintain clear and accurate accounts and records; provide regular accounting of actions as trustee
- Exercise the same care and skill in administering the trust as a person of ordinary prudence would exercise in dealing with his/her own personal property
- Administer the trust solely in the interest of the beneficiary(ies)
- Valuation of assets for tax purposes, insurance, sale, disposition, performance measurement and capital gain reporting
- Payment of estate, inheritance and income taxes
- Investment of trust/estate portfolio
- Administer the trust in adherence to the provisions of the trust document
There are also significant liabilities inherent in serving as a trustee, such as:
- Violation of any applicable law
- Non-compliance with the terms of the trust or any applicable court orders
- Failure to properly discharge any of its duties or responsibilities
- Abuses of any trustee powers
Considering these responsibilities and potential liabilities, we believe that in almost all cases, a corporate trustee is a better, long-term choice than naming an individual as a trustee. Covenant Trust Company® is well-equipped to serve as your trustee (or as successor trustee) for revocable trusts, irrevocable trusts, and IRA accounts. If you are interested in our trustee services, please give us a call [view Directory] You can also request more information through our info page.