What Does a Successor Trustee Do in Minnesota?
If someone named you as successor trustee, you may be wondering what the job really involves. The answer depends on the trust and what it holds. This post walks through the everyday work, how much time it can take, and what changes after an incapacity or a death. You can also download our free guide to keep on hand.
At a glance:
A successor trustee manages a trust’s assets if the grantor becomes incapacitated or after the grantor dies. The work can include paying bills, reviewing investments, caring for property, keeping records, and communicating with beneficiaries. The trust document controls what you can do.
What Is a Successor Trustee?
Being a trustee is more than signing a few papers. Depending on the trust and the assets involved, serving as trustee can mean ongoing financial, administrative, and communication work. The amount of work varies a lot from one trust to another.
Examples of Day-to-Day Trustee Work
- Banking and bills. Review bank statements, deposit income, and pay mortgages, utilities, insurance, taxes, and other expenses. Transfer money between trust accounts when appropriate and reconcile accounts.
- Investments. Review investment statements, check whether investments are still appropriate, talk with a financial advisor, approve investment changes, and keep enough cash on hand for expected expenses.
- Real estate and property. Arrange maintenance and repairs, pay property expenses, keep insurance in place, work with tenants or property managers, and handle a sale or transfer when the trust requires it.
- Recordkeeping. Keep receipts and statements, track income and expenses, maintain an inventory of trust assets, document significant decisions, and organize records for beneficiaries, accountants, and attorneys.
- Taxes and accounting. Gather information for tax returns, work with the accountant, provide records and tax documents, and pay taxes and other obligations from trust assets when appropriate.
- Beneficiary communication. Answer questions, provide information and reports when required, explain distributions, talk about timing and administration, and keep beneficiaries reasonably informed.
- Distributions. Review requests for money or property, decide whether the trust allows the distribution, document the decision, prepare checks or transfers, and keep records of every distribution.
- Professional advisors. Hire and work with attorneys, accountants, financial advisors, real estate professionals, property managers, or other professionals when needed, and review their work and invoices.
How Much Time Does It Take?
It depends on the trust. A simple trust holding a few investment accounts may need only occasional attention. A trust with a home, rental property, business interests, several beneficiaries, or complicated distributions can take a lot more work.
Right after an incapacity or death, there’s often a busier stretch: locating assets and documents, contacting financial institutions, securing property, paying immediate expenses, talking with beneficiaries, and working with the attorney and accountant.
After that, the work usually settles into a routine of reviewing statements, paying expenses, making required distributions, keeping beneficiaries informed, and maintaining records.
If the Grantor Is Incapacitated
You may need to manage the grantor’s financial affairs through the trust. For example, you may pay expenses, manage investments, maintain a home, arrange repairs, and make distributions the trust authorizes. Coordinate with the grantor’s agent under a power of attorney and other professionals as needed. Serving as trustee doesn’t give you authority to make health care decisions.
After the Grantor Dies
The job generally shifts from ongoing management to trust administration and distribution. That can include collecting and valuing assets, figuring out what passes through the trust, paying appropriate expenses, coordinating tax and accounting work, keeping beneficiaries informed, and distributing property according to the trust.
A Typical Trustee Routine
| Monthly or as needed | Quarterly or periodically | Annually or when required |
|---|---|---|
| Pay bills and expenses | Review bank and investment statements | Work with the accountant on tax filings |
| Handle maintenance or property issues | Review trust income and expenses | Provide required tax information to beneficiaries |
| Respond to beneficiary requests | Check insurance and major assets | Review whether distributions are required |
| Make authorized distributions | Communicate with advisors | Organize and keep trust records |
Remember
- You don’t have to do everything yourself. Trustees commonly work with attorneys, accountants, financial advisors, property managers, and other professionals.
- You do need to keep good records and make sure trust transactions are handled properly.
- Don’t use trust property for your own benefit, and don’t make a distribution just because you think it’s fair. The trust controls what you can do.
- If you aren’t sure you have authority to take an action, ask the attorney before acting.
Minnesota Law
Minnesota’s Trust Code is mainly found in Minn. Stat. Chapter 501C. Trustee duties, powers, administration, information and reporting, and investment rules are covered throughout that chapter.
Related Guides
Why This Role Matters
It’s easy to say yes before you know what the role asks of you. Knowing the work ahead of time helps you plan your time, keep good records from day one, and bring in help before small questions become big problems. It also helps you stay within the authority the trust gives you.
How Everbright Legacy Law Can Help
Everbright Legacy Law is Minnesota’s only law firm integrating licensed social workers with legal services through its Life Care Planning model. Our attorneys guide trustees through trust administration, and our licensed social workers help families coordinate care when the grantor is still living and needs support.
If you have questions about serving as a successor trustee, call (952) 925-4147 or email hello@everbrightlegacy.com to schedule a conversation.
This article is for educational purposes only and is not legal advice. Review the trust document before taking action, because its terms may change your responsibilities. Consult an attorney about your specific situation.
