Trust property must be productive. But what does that mean exactly? Well if you have rental real property in a Trust, it needs to be rented. If you have cash in a bank account, it needs to be invested. If you have a car that no one drives, it needs to be sold. And if you have pink flamingoes, well you get the idea.

The point here is that Trust property cannot simply sit around gathering dust. As a Trustee of a California Trust, you have an affirmative duty to take control of Trust property and put it in a position to produce something. Assets have the potential to produce income, appreciation, or both. And having the assets grow and generate income is one of the basic requirements for any Trustee.

Luckily, the Trustee is not expected to know how to do all of this on his or her own. The Trustee has the right to hire professionals to help advise on decisions as to what to do with Trust assets. For example, if you have rental real estate, the Trustee can hire a property manager to rent it. Or hire a real estate broker to list the property for sale. If you have cash assets that need to be invested, then a certified financial planner can be hired to advise on a proper investment portfolio.

And if the Trust currently has invested assets that are not doing well, then the Trustee has a duty to sell the bad stuff and buy into a better portfolio.

In the end, it is the Trustee’s responsibility to build the Trust assets into something better for the beneficiaries to enjoy in the future.