How much "power" does a property trustee have?

Question

Exactly what kinds of responsibilities does a sole trustee have in regards to being the trustee over property and a building on that property? Is it possible to have more than one trustee, and is that beneficial? Thanks!

Answer 1

there can only be one trustee for a property
As a beneficial trusteee, he/she has a very limited power because he/she is actually holding the property for someone else, rather than himself/herself.

Answer 2

A trustee holds legal title to property, while equitable title is held by the beneficiary.

The trustee has the duty to manage the property, to preserve the trust, and to act as a fiduciary to the beneficiaries. The trustee, as legal title holder, has the authority necessary to perform their duties and any authority granted to them by the trust instrument.

The fiduciary duties include the duty of due care, diligence and competence; the duty of loyalty, to avoid self-dealing and to maintain proper accounting and records for the trust. The trustee also has a duty to manage the trust assets, to ensure that they do not become devalued (avoid waste) and to make prudent investments necessary to offset inflation and grow both the income and principle, without subjecting the trust assets to unacceptable risk.

In the case of real property, this would include making necessary repairs and maintenance, and ensuring that property taxes and mortgages are paid. If the property is not being actively used by the beneficiary, the trustee may also be required to effectively use the property to generate income, both to cover the above costs and as part of the income rights of the beneficiary. Again, these would be performed according to the prudent investor rule, which states that a trustee must act with regard to trust property in the same manner that a reasonably prudent investor would act.

It is possible to have multiple trustees. Each is equally, jointly and severally liable for the actions of the trust. Each has the authority to act as necessary, though any fundamental changes to the trust property would require unanimous approval by the trustees. Each trustee is also under the duty to personally manage, as discussed above, and is potentially liable for actions committed by co-trustees in their unreasonable absence.

The advantage to having multiple trustees, of course, is the ability to share the work load required to manage the trust.