Trust Administration Checklist – Step-by-Step Guide for Trustees

Know your obligations

The Role of a Trustee

Serving as a trustee is both an honor and a serious responsibility. Under California law, trustees must follow strict fiduciary standards—acting in the best interests of beneficiaries, managing assets prudently, and following the exact terms of the trust. At Jennifer Shelton, A Professional Law Corporation, we advise trustees throughout Siskiyou County to meet these obligations with confidence and transparency.

Your responsibilities under the law

Core Trustee Duties Under California Law

California Probate Code §§16000–16015 defines a trustee’s core obligations:


  • Duty to Administer Prudently: Follow the trust’s terms carefully and make decisions that protect and grow trust assets.


  • Duty of Loyalty: Always act in the best interests of the beneficiaries—never for personal gain.


  • Duty of Impartiality: Treat all beneficiaries fairly, especially when you are also one of them.


  • Duty to Avoid Conflicts: Avoid actions that could personally benefit you or conflict with the trust’s goals.


  • Duty to Preserve Property: Keep assets insured, maintained, and properly titled.


  • Duty to Keep Assets Separate: Maintain separate accounts for trust funds.


  • Duty to Account: Keep records and report to beneficiaries upon request.


Each of these duties ensures trust integrity and transparency. For practical steps to fulfill them, review our trust administration checklist.

Consequences of Breaching Duties

  • Beneficiaries may seek removal of a negligent trustee.



  • Trustees can be required to reimburse financial losses.


  • Court involvement can increase time and costs.


  • Trust disputes often result from lack of communication or poor records.

Accountability protects everyone

Support for every step

How We Help Trustees

Jennifer Shelton, A Professional Law Corporation, works directly with trustees to prevent mistakes and resolve questions before they become problems. We provide:


  • Guidance on fulfilling legal duties.


  • Help preparing annual accountings.


  • Advice on communicating with beneficiaries.


  • Practical strategies for complex trust assets.


Proper support helps you meet your obligations while avoiding personal liability. For broader information about managing trusts, see our trust administration page.

Key Principles to Remember

  • Stay transparent and communicative.


  • Keep records for every transaction.


  • Act impartially between all beneficiaries.


  • Seek advice before making complex decisions.



  • Fulfill your duties as outlined in the trust.

Integrity builds confidence

Questions answered

Frequently Asked Questions – Trustee Duties

  • Can trustees receive compensation?

    Typically, yes. Trustees are entitled to reasonable fees, either as stated in the trust or allowed by law.  However, if the trust specifically states the trustee is not entitled to compensation, then they are not paid.

  • Can I resign as trustee?

    Yes. Most trusts provide a process for resignation, typically requiring notice and approval.

  • What happens if co-trustees disagree?

    You must act jointly unless the trust allows delegation. Communication and documentation are essential to avoid disputes.

  • Do these duties apply while the trust creator is alive?

    Not usually, no.  In a revocable living trust, duties are owed to the trust creator.  If they are the Trustee as well as the creator of the trust, which is typical, then they do not treat their assets any differently than if the trust did not exist.  Once they pass, duties shift to the beneficiaries and adherence to those duties becomes critical.