• The trustee must manage the trust property for the beneficiaries.Legal Law Justice image by Stacey Alexander from Fotolia.com
  
  Trust duties are completely delegated to the trustee of the trust. The trustee, or executor, is responsible for managing the trust property before it's time to distribute the property (usually when the creator of the trust dies). Managing trust property is a substantial responsibility that requires vigilance and good judgment. The trustee is responsible for reimbursing the trust if it's determined that he has acted negligently, recklessly or without good judgment.
  
  

Ordinary Prudence and Prudent Investor Standards

• The trustee must act with ordinary prudence to make sure that the trust property maintains its value. For example, if the trust property includes a home, the trustee needs to take reasonable steps to ensure the house doesn't fall into disrepair. This also means that the trustee needs to keep accurate accounting records and not comingle any of the trust funds with other funds. This will help ensure the trust property is not being abused and will also give the court a verifiable record to look at if there are any questions regarding how the trustee acted. When a trust contains stock, the trustee is expected to act as a reasonably prudent investor. This standard gives the trustee two options. First, the trustee can manage and invest the stocks personally. Second, the trustee can hire an investor to help invest the stock if the trustee knows little about investment. Again, the trustee is required to make prudent decisions that include diversifying investments and not make risky investments.
  
  

No Self-Dealing

• The trustee has a duty to not use any of the trust property for self-dealing or profit. For example, if a trust contains $10,000 in cash, the trustee isn't allowed to take out any of that money for her own personal use with the intention of reimbursing the trust. The trustee will be liable for any losses that occur. In fact, the trustee will likely face penalties even if she does fully reimburse the trust. The mere act of using trust property for personal purposes is punishable.
  
  

Follow the Terms of the Trust

• The trustee is required to follow the exact terms of the trust. When it comes to testamentary documents and instruments such as a will, the intent of the trust's creator is paramount. The trustee must do everything possible to make sure the intent of the trust is followed.
  
  

No Delegation of Duties

• The trustee isn't allowed to delegate any duties that the trustee can reasonably perform to another party. If a duty is delegated, the trustee remains liable for any actions the other party takes. The trustee is expected to delegate duties in a reasonably prudent manner.