If you're considering setting up a revocable trust as part of your estate plan, you've probably heard the term "trustee" thrown around a lot. But what does a trustee actually do day-to-day? And why does it matter who you choose for this role? Let's break it down in plain English. Think of a trustee as the person who becomes the "manager" of your trust assets. They're the ones who step in to handle your affairs when you can't: whether that's due to incapacity or after you've passed away. The Basics: What Is a Trustee? A trustee is someone who has the legal responsibility to manage and distribute trust assets according to the instructions you've laid out in your trust document. In a revocable trust (also called a living trust), you typically start as your own trustee. This means you maintain complete control over your assets during your lifetime. But you also name a "successor trustee": someone who takes over when you can no longer manage things yourself. This person becomes crucial to making sure your wishes are carried out exactly as you intended. The Heavy Lifting: Core Trustee Responsibilities Asset Management and Protection When your successor trustee steps in, their first job is to locate and secure all trust assets. This isn't as simple as it sounds. They need to: Find all bank accounts, investment accounts, and other financial assets Locate real estate details and vehicle titles Track down life insurance policies and retirement accounts Identify business interests or other valuable property Get everything properly valued Imagine your elderly parent has been managing their own trust for years, but now they're in memory care. Your role as successor trustee means you'd need to figure out where all their assets are located: sometimes this includes safety deposit boxes, old investment accounts, or even cash hidden around the house. Financial Management and Investment Once they've secured the assets, trustees need to manage them wisely. This means: Making prudent investment decisions (or hiring professionals to help) Ensuring assets remain productive and don't just sit idle Protecting assets from unnecessary risks Managing day-to-day expenses like mortgage payments, insurance, and taxes Let's say your trust includes rental property. Your trustee would need to collect rents, handle maintenance issues, deal with tenant problems, and make decisions about whether to keep or sell the property based on what's best for the beneficiaries. Record Keeping and Tax Obligations This might be the least glamorous part of being a trustee, but it's absolutely critical. Trustees must: Keep detailed records of every transaction Track all income and expenses Maintain correspondence files File necessary tax returns (trust returns, estate returns, or final personal returns) Provide regular accounting to beneficiaries Think about it this way: if the IRS comes knocking three years later asking about a transaction, your trustee needs to be able to produce the documentation that shows everything was handled properly. The People Part: Working with Beneficiaries Communication and Transparency Being a trustee isn't just about managing money: it's about managing relationships too. Trustees have a legal obligation to: Keep beneficiaries informed about trust activities Respond to reasonable requests for information Provide regular accounting statements Explain decisions when asked This can get tricky when family dynamics are involved. Maybe your trust says one child should receive more than another, or distributions should be delayed until certain conditions are met. Your trustee needs to communicate these decisions clearly while staying neutral and following the trust terms. Making Distribution Decisions Depending on how your trust is written, your trustee might have significant discretion about when and how much to distribute to beneficiaries. They need to: Understand the specific terms of your trust document Make fair decisions when beneficiaries have competing interests Consider the long-term needs of all beneficiaries Balance current needs with future obligations For example, if your trust says funds should be used for your grandchildren's "health, education, maintenance, and support," your trustee needs to decide whether that expensive private school tuition request is reasonable or if the money should be saved for college instead. The Legal Stuff: Fiduciary Duties Here's where things get serious. Trustees are "fiduciaries," which means they have the highest legal duty to act in the best interests of the beneficiaries. This includes: Acting in good faith and with loyalty Avoiding conflicts of interest Not using trust assets for personal benefit Making decisions based solely on what's best for beneficiaries This fiduciary duty is a big deal. If a trustee messes up, whether through poor decisions, self-dealing, or just neglect, they can be personally liable for any losses to the trust. What Trustees Can't Do It's just as important to understand the limitations. Trustees: Cannot delegate their core responsibilities (though they can hire professionals to help) Have no authority over assets that aren't actually in the trust Cannot ignore the terms of the trust document Cannot favor some beneficiaries over others unless the trust specifically allows it Choosing the Right Trustee: Why It Matters Given everything we've covered, you can see why choosing the right successor trustee is so important. You need someone who is: Trustworthy and reliable Good with financial matters (or willing to get help) Able to handle family dynamics diplomatically Organized enough to manage detailed record-keeping Available and willing to take on the responsibility Many people automatically think of their oldest child or their spouse, but those might not always be the best choices. Sometimes a younger child who's good with money, a trusted friend, or even a professional trustee might be better suited for the role. When Things Get Complicated Real life is messy, and trustees often face situations that aren't clearly covered in the trust document. Maybe there's a family business that needs ongoing management, or beneficiaries who disagree about distributions, or unexpected expenses that require tough decisions. This is why many trustees work with attorneys, accountants, and financial advisors. They're not expected to be experts in everything, but they are expected to seek appropriate professional help when needed. The Bottom Line for Ohio Families Setting up a revocable trust is just the first step. The success of your estate plan really depends on having the right person in place to carry out your wishes. Take time to think carefully about who would be best suited to serve as your successor trustee, and make sure you have honest conversations with them about what the role involves. Remember, being a trustee is a significant responsibility that can last for many years. The person you choose will have considerable authority over your assets and a major impact on your beneficiaries' financial future. If you're working on your estate plan and want to discuss trustee selection or any other aspects of setting up a revocable trust, consider talking with an experienced estate planning attorney who can help you think through your specific situation and family dynamics. Your trustee choice today shapes your family's tomorrow; make it count.