Becoming Trustee: Navigating the First 30 Days Serving as a Trustee

Serving as a trustee is a serious responsibility. You’ve been chosen to manage someone else’s property, honor their wishes, and act in the best interests of the trust’s beneficiaries. The first month after you accept the role is critical — it sets the tone for your entire administration.

This guide walks you step-by-step through exactly what to do in the first 30 days, with real-world examples, checklists, and practical tips you can put into action immediately.

1. Understanding What You’ve Agreed To

Read the Trust Document in Full

Your starting point is the trust agreement itself. It’s your roadmap — spelling out your powers, duties, and the instructions you must follow.

Example: If the trust says that assets are to be distributed in three equal installments over 10 years, you can’t accelerate payments just because a beneficiary asks.

Checklist:

• Locate the original trust document (and any amendments).

• Read it start to finish — twice.

• Note key provisions: who the beneficiaries are, what assets are in the trust, distribution rules, and your powers as trustee.

• Flag anything unclear for later discussion with an attorney or CPA.

2. Officially Accepting the Role

Even if the trust names you as trustee, you may need to formally accept in writing. This protects you legally and starts the clock on your duties.

Tip: In some states, you may also need to file a notice of trust or other documents with the local probate court.

Example: Susan’s father passed away, and she was named trustee. She signed an “Acceptance of Trustee” form provided by the estate’s attorney. This not only made her role official but also ensured she received copies of all related documents.

3. Securing Trust Property

One of your first jobs is to safeguard all trust assets — financial, physical, and digital.

Immediate Actions:

• Change locks on real estate if appropriate.

• Make sure property insurance is current.

• Move valuables (jewelry, collectibles) to a safe or secure location.

• Protect digital assets (logins, domain names, cryptocurrency wallets).

Example: When Mark became trustee for his uncle’s estate, he quickly learned the family vacation home’s insurance had lapsed. By acting quickly, he reinstated coverage and avoided potential liability if something had gone wrong.

4. Notify Beneficiaries and Relevant Parties

You’ll need to let beneficiaries, financial institutions, and sometimes creditors know that you are now the acting trustee.

Checklist:

• Send written notice to all beneficiaries (many states require this).

• Contact banks, brokerages, and investment firms to update account records.

• Inform insurance companies, pension administrators, and any businesses owned by the trust.

Tip: Always communicate in writing and keep copies for your records.

5. Create a Master Inventory of Trust Assets

You can’t manage or distribute assets if you don’t know what exists. The inventory process can take time, but start it immediately.

What to Include:

• Bank accounts and balances

• Investment portfolios

• Real estate (addresses, deeds, mortgages)

• Vehicles

• Business interests

• Insurance policies

• Personal property of value

• Digital assets

Example: Laura, a first-time trustee, used a simple spreadsheet to track every asset she located. When a beneficiary later questioned whether certain accounts existed, she had a complete, dated record to show.

6. Get a Tax Identification Number (EIN)

Once a trust becomes irrevocable (often after the grantor’s death), you’ll likely need a new Employer Identification Number from the IRS for tax reporting purposes.

How to Get It:

• Apply online at the IRS website — it’s free and immediate.

• Use the EIN when opening trust bank accounts or filing trust tax returns.

7. Open a Trust Bank Account

All trust money should flow through a dedicated account — never mix it with your own funds.

Example: When David became trustee, he deposited a beneficiary’s payment into his personal account “just temporarily.” Even though he moved it to the trust account the next day, it created suspicion and tension that lasted for years.

Tip: Keep meticulous records of all deposits and withdrawals.

8. Hire the Right Help Early

You don’t have to do it all alone — and often you shouldn’t. In the first month, consider whether you need:

• An attorney specializing in trusts and estates

• A CPA familiar with fiduciary accounting and tax returns

• A financial advisor to manage investments

• A real estate agent to value or sell property

Example: Maria was overwhelmed managing her mother’s trust, which included rental properties. She hired a property manager within two weeks — this freed her to focus on legal and accounting duties.

9. Understand Your Fiduciary Duties

As trustee, you have legal duties that include:

• Acting in the best interests of the beneficiaries

• Managing assets prudently

• Avoiding conflicts of interest

• Keeping accurate records

Failing in these duties can result in personal liability.

10. Set Up a Communication Plan

Beneficiaries want to know what’s happening. Poor communication causes most trustee–beneficiary disputes.

Example: One trustee sent a monthly email update summarizing what had been done, what was in progress, and what was coming next. This reduced anxious phone calls and kept everyone on the same page.

11. Calendar Important Deadlines

Missing deadlines can have tax or legal consequences.

• Tax filings (state and federal)

• Beneficiary notice periods

• Distribution timelines stated in the trust

• Insurance renewals

Use both a digital calendar (with reminders) and a paper backup.

12. Organize All Documents

Create a filing system from the start:

• Paper files in labeled folders

• Digital backups stored securely

• Separate sections for correspondence, bank statements, property records, tax returns

Key Takeaways

• The first 30 days are about stabilizing the situation, protecting assets, and establishing systems.

• Good communication and documentation are your best defenses against disputes.

• Lean on professionals when needed — their fees can save you bigger costs down the road.