Named as Trustee? What You Need to Know

In This Article

Someone named you as trustee of their trust. Maybe they told you in advance. Maybe you found out after they died. Either way, the role comes with real legal duties and real personal liability. This page explains what the job involves under Pennsylvania law.

Accepting the Role

You don’t have to serve. Under 20 Pa.C.S. § 7761, a person designated as trustee who hasn’t accepted may reject the trusteeship. If you don’t accept within a reasonable time after learning of the designation, you’re deemed to have rejected it.

But be careful: you accept by exercising powers or performing duties as trustee, or by taking delivery of trust property. Even informal actions (like moving money from the trust account or paying trust bills) can constitute acceptance.

Your Fiduciary Duties

As trustee, you owe the highest legal duty to the beneficiaries:

Loyalty (§ 7772): You must administer the trust solely in the beneficiaries’ interests. No self-dealing, no conflicts of interest, no transactions that benefit you at the trust’s expense.

Impartiality (§ 7773): If there are multiple beneficiaries, you must treat them equitably; not necessarily equally, but fairly in light of the trust’s purposes.

Prudent administration (§ 7774): Administer the trust as a prudent person would, considering the trust’s purposes, provisions, and circumstances.

Prudent investment (§ 7203, Prudent Investor Rule): Invest trust assets as a prudent investor would, considering the trust’s overall investment strategy. Diversification is required unless the trustee reasonably determines a concentrated position serves the trust’s purposes.

Information (§ 7780.3): Keep qualified beneficiaries reasonably informed. Respond to requests for information about trust assets and transactions.

Practical Steps

• Read the trust document. Thoroughly. It controls your powers and obligations
• Inventory trust assets. Know what the trust owns, where it is, and what it’s worth
• Get a tax ID number if the trust needs one (always after the settlor ’s death for a formerly revocable trust)
• Open a trust bank account in the trust’s name. Never commingle trust funds with your own money
• Notify beneficiaries. Within 30 days of learning of the settlor’s death (§ 7780.3(c))
• Keep detailed records of every transaction, every decision, and the reasons for it

Bond Requirements

Under § 7762, a trustee gives bond only if the court finds one is needed to protect beneficiaries or the trust requires it. Institutional trustees (banks, trust companies) are exempt even if the trust says otherwise. Many modern trusts waive the bond requirement.

Compensation

A trustee is entitled to reasonable compensation (§ 7768). What’s “reasonable” depends on the trust’s size, complexity, the work involved, and the trustee’s expertise. Corporate trustees typically charge a percentage of assets under management (often 0.5% to 1.5% annually). Individual trustees may charge a flat fee, hourly rate, or percentage. If the trust instrument sets compensation, that controls.

Liability

A trustee who breaches a duty is personally liable for the resulting loss (§ 7781). This means your personal assets are at risk. Common areas of liability include imprudent investments, failure to diversify, self-dealing, delayed distributions, failure to file tax returns, and failure to inform beneficiaries.

Protection comes from proper documentation and process, not from good intentions.

Statutory content on this page was last verified against Pennsylvania statutes (20 Pa.C.S.; 72 P.S. Art. XXI): February 2026 . If you are reading this significantly after that date, confirm key provisions with current statute text or contact our office.