The Property Security Checklist is a fillable PDF designed to help trustees calculate, document, and justify a prudent reserve before making interim or final trust distributions. Setting aside adequate reserves is a critical fiduciary obligation and one of the most effective ways to protect a trustee from personal liability, clawbacks, and beneficiary disputes.
 
This checklist walks trustees through identifying known liabilities (such as administrative expenses, verified debts, taxes, insurance, and property costs) and potential or contingent liabilities (including unresolved creditor claims, anticipated legal fees, property maintenance, and beneficiary disputes). A built-in calculation section consolidates these amounts and allows trustees to apply a discretionary safety margin, resulting in a clearly documented total reserve amount. The form concludes with a trustee certification to memorialize the decision-making process.
 
Ideal for use before each round of distributions, this checklist helps trustees demonstrate prudence, conservatism, and compliance with fiduciary duties while maintaining clear documentation for beneficiaries, professionals, or court review. The fillable PDF format allows trustees to complete, update, and retain the checklist as part of the trust’s permanent records.