COUNSELOR’S CORNER Advice for the Corporate Trustee Krista Eckhoff & Brian Barmettler, Baird Holm LLP CORPORATE TRUSTEES HAVE TO CONFIDENTLY KNOW THE answers to many questions, both those uniform to all trusts, and those tailored to the specific assets of a particular trust vehicle: who is a beneficiary? What obligations are owed to those beneficiaries? How can I deal with complicated family dynamics? What can I do if a family business has been operating in a way that would now be inappropriate when thinking about all beneficiaries? For those banks or entities with trust powers who serve as corporate trustees, the fiduciary role by default raises those important questions, and requires that you have answers readily available. Your obligations and duties as a corporate trustee require you to inherently understand the relevant trust document itself, as well as Nebraska law as reflected in court decisions and the Nebraska Uniform Trust Code. This article will explore some of those nuances, and provide a framework to address the challenges facing corporate trustees. General Duties A corporate trustee’s duties have been defined by the Nebraska Supreme Court: A trustee has the duty to administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with the Nebraska Uniform Trust Code. The Nebraska Uniform Trust Code states that trustees owe the beneficiaries of a trust duties that include loyalty, impartiality, prudent administration, protection of trust property, proper recordkeeping, and informing and reporting. In re Conservatorship of Abbott, 295 Neb. 510, 526, 890 N.W.2d 469, 482 (2017). Thus, proper trust administration must always begin with a thorough understanding of the terms of the particular trust document. Those terms provide the necessary guidance and should reflect the testator’s NEBANKERS.ORG 16
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