Successor Trustee's First Duty

Getting Trust Assets Where They Belong

When a new trustee steps in, whether after a resignation, removal, or death, one of their first obligations is straightforward but critical: collect the trust property from whoever held it before. This is a core fiduciary duty that applies from the moment the successor trustee accepts the role.

This statute covers two related duties. First, the new trustee must pursue the transfer of trust assets. If a former trustee is holding onto accounts, real estate, personal property, or records that belong to the trust, the successor trustee has a legal obligation to demand their return. This is not discretionary.

The trust document and trust agreement should identify the assets that need to be collected. Reviewing the terms of the trust helps the successor trustee understand what the trust owns and where those assets are held.

Addressing a Former Trustee's Misconduct

Second, if the new trustee becomes aware that the previous trustee committed a breach of trust, they must take reasonable steps to address it. That could mean recovering misappropriated funds, filing a legal claim, or seeking court intervention. A trustee who fails to act may be held personally liable for losses that could have been recovered.

The trigger is knowledge. The statute says "known to the trustee." A successor trustee is not required to conduct an exhaustive investigation into every prior decision. But if they discover evidence of mismanagement or misuse of trust assets, they cannot look the other way. Part of the duty to administer the trust is holding prior fiduciaries accountable.

For families navigating a trustee transition, this statute provides an important safeguard. It ensures that the new trustee has both the authority and the obligation to bring trust assets under proper control.