• Living trusts are used to used to distribute the assets in accordance with the wishes of a person who becomes permanently incapacitated due to illness or injury. The trustee is the person who was previously appointed to carry out the provisions outlined in the trust document. Thus, the trustee bears the responsibility of seeing that the trust is executed properly as well as legally. The trustee should consult with professionals such as tax specialists and financial advisors as needed.
  
  

Examining the Document

• Examine the document thoroughly so that you completely understand all of its provisions. Since you are responsible for executing the living trust, you need to understand things like what conditions must be met before paying out any of the trust's principal.
  
  

Keeping Records

• Keep complete and accurate records of all documents and transactions related to the trust. You are in charge for administering the trust's assets, so keeping good records will protect you against possible claims of mismanagement down the road.
  
  

Responding to Inquiries

• As the trustee, you will need to respond to requests from interested parties in an accurate and timely fashion. Requests can include inquiries for the trust's financial statements or accounting records. You will also likely have to communicate with the beneficiaries of the trust.
  
  

Investing of Assets

• The provisions of the trust may require that you invest some or all of its assets so that they can be distributed at a point in the future. If so, you are responsible for investing the assets in a prudent manner for the beneficiaries.
  
  

Paying Debts and Taxes

• You must ensure that any debts are repaid in accordance with the document, as well as the timely payment of state and federal taxes. There are specific tax laws that pertain to trusts, so the trustee must become familiar with them.