What are the Responsibilities of a Trustee?
A Trustee is considered a fiduciary. A fiduciary is defined as one who is chosen to occupy a special position of trust and confidence. Under Nebraska law fiduciaries are generally held to a standard of prudence requiring exercise of the degree of care a prudent investor would exercise in the investment and management of the assets of another person. Even when documents give very broad discretion to a fiduciary, a fiduciary will generally be held to this standard of care and be required to exercise their judgment in good faith and not for self gain.
As a result of the broad powers generally granted to fiduciaries under wills, trusts, and powers of attorney; it is essential people choose a fiduciary in whom they have absolute confidence regarding honesty, integrity, and skill in asset management. If any of these factors are lacking, a different fiduciary should be chosen.
All trustees are required to comply with record keeping requirements, the furnishing of accountings to beneficiaries, and the filing of income tax returns. First Nebraska Trust Company keeps current on all of these requirements and has the expertise to deal with all trustee compliance issues. Managing assets, providing for beneficiaries in accordance with the provisions of written trust agreements, compliance with all legal requirements, and establishing relationships of trust with beneficiaries is the full-time responsibility of First Nebraska Trust Company. Additionally, First Nebraska Trust Company provides a primary and backup account trust officer for each account so at least one person is nearly always available and familiar with a particular trust and its beneficiaries.
First Nebraska Trust Company is bonded as required by state law and is subject to regular examinations by the Nebraska Department of Banking and Finance and also has its own internal audit procedures. An internal structure which requires committee review and approval of requests for many distributions from trust helps assure that beneficiaries receive the attention deserved and the benefits directed by the trust document of which they are beneficiaries. Although estate proceedings are generally of shorter duration than trusts, many of the same requirements apply to personal representatives of estates as apply to trustees of trusts – First Nebraska Trust Company is uniquely qualified to fulfill those requirements while serving the family.