The Co-Trustee typically helps an elderly parent manage his or her finances and often handles the details of changing daily care needs. This relationship often begins when one parent passes away and the remaining parent needs assistance. The successor trustee is the trustee who is responsible for the trust management after the death of the grantor. Assuming the decedent had a Living Trust, here is a brief outline of duties for a co-trustee who later becomes the successor trustee:

Immediate Responsibilities
Locate and study decedent’s Will and Trust. Confer with attorney.
Inventory estate assets.
Meet with family
Assist remaining spouse with financial affairs.

Asset Assembling Responsibilities
Arrange for management and collection of rents
Arrange for decedent’s business, if needed.
Collect life insurance
Take custody of securities, collect income, liquidate loans and adjust portfolio.
Inspect real estate, check leases, mortgages, taxes, and insurance.
Determine decedent’s interests in property in other states. Review insurance benefits, royalties, etc.
Safeguard jewelry, heirlooms and other valuables
Investigate and collect Social Security, veterans and union benefits

Payment of Claims responsibility
Pay or object to all claims within the limitation period
Determine if mortgages are to be paid from the estate assets or go with distribution of mortgaged asset

Personal Responsibility and Liability
File IRS notices, prepare and pay fiduciary income taxes, prepare and file federal estate tax return.
File preliminary notice with the state. Pay federal estate taxes and inheritance taxes where applicable. Pay state any intangibles tax due.
Prepare final income tax return and pay taxes. Check for possible overpayments. Defend against improper assessments.

Accounting Responsibilities
Distribute timely statements to all parties covering all principal and income receipts and disbursements.

Asset Distribution Responsibilities
Remit specific gifts.
Obtain final receipt and release from distributes.
Set up trust created by will or pour assets into existing trust.
Determine that charitable distributes qualify under tax code.

This list of duties is only to be used as a guide and is not comprehensive. There are differences in state requirements as well as variables depending upon the contents of each estate.