Duty to Care for the Trust Property

Question 1

UPC sections that deal with the duty to care for and manage the trust property, including:

(4)

Answer 1

• 809: duty to control and protect the trust property
• 811: the duty to enforce claims of the trust and defend against claims against the trust
• 812: the duty to compel a former trustee to transfer the trust proprty and to take “reasonable steps” to preserve breach claims against a former trustee
• 810: the duty to keep records and segeragate the trust property

Question 2

UPC 810 Record Keeping and identification of trust property

4 things that a trustee shall do

Answer 2

1. a trusee shall keep adequate records of the administration of the trust
2. a trustee shall keep trust property seperate from the trustees own property
3. Except as provided in (d), a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasiable, appears in records maintained by a party other then a trustee or beneficiary
4. If the trustee maintains records clearly indiciating the respective interests, a trustee may invest as a whole the property of two or more seperate trusts

Question 3

UPC 810 Record Keeping and identification of trust property
The two key requirements

Answer 3

duty to segerate the assets and earmark them for their intended purposes

Question 4

earmarking

Answer 4

labeling the property as intended for the use of the beneficiary

Question 5

How to earmark real property

Answer 5

re-deed the property in the name of the trustee

Question 6

How to earmark tangible personal property

Answer 6

the property should be listed on a schedule attached to a declaration of trust

Question 7

Failure to segergate the trust assets from the trustees own property risks the attachment

Answer 7

of the property by the trustees creditors