The first duty of the trustee is to protect and conserve the trust assets and estate. No self interest can conflict with this responsibility. He cannot derive any personal advantage at the expense of the trust and cannot put himself in a position antagonistic to the interest of those whom he represents. However, merely because a trustee has a personal interest in a transaction that will not cause it to be avoided if he deals openly and in good faith but he definitely cannot use trust funds for his own purpose.
An individual need not accept appointment as trustee because such a fiduciary position is voluntary and the individual must agree to accept the position. Once a trustee acepts the trust he is under a duty to properly administer it so long as he is trustee. Where a testator creates two separate and distinct trusts, the named trustee could refuse to accept one of the trusts, if good reasons exist for doing so, and accept the other trust. Where a trust instrument requires that a certain number of trustee must act, a lesser number cannot deal with the trust property.
If a trustee refuses and neglects to act for the interests of the beneficiaries an interested person such as a beneficiary, has a remedy in that he may ask a court of equity to remove the trustee and appoint a successor in his place.
Once qualified, it becomes the duty of each trustee to participate actively in the administration of the trust. The trustees must carry out the terms of the trust as provided by the settlor in the trust document in accordance with the purpose of the trust.
Those trustees who are required to give a bond to the Probate and Family Court Department before entering upon their duties agree to perform certain duties which are prescribed by statute. These duties are known as statutory conditions and are incorporated by reference in the bond form.
The statutory conditions of a trustee's bond are:
(1) to make and return to the Probate Court at such time as it orders a true inventory of all the real and personal property belonging to him as trustee which at the time of the making of such inventory shall have come to his possession or knowledge;
(2) To manage and dispose of all such property, and faithfully to perform his trust relative thereto according to law and to the will of the testator or the terms of the trust as the case may be;
(3) To render upon oath at least once a year until his trust is fulfilled, unless he is excused therefrom in any year by the court, a true account of the property in his hands and of the management disposition thereof, and also to render such account at such other times as said court orders;
(4) At the expiration of his trust to settle his account in the Probate Court and to pay over and deliver all the property remaining in his hands, or due from him on such settlement, to the person or persons entitled thereto.
