Duty 4: Keep good records

You must keep true and complete records of the money and property in Rose’s trust. The trust agreement may say that you must share your records with someone else who can check up on you, and Texas law says that some beneficiaries are entitled to ask for an accounting every year.

Practice good recordkeeping habits:

  • Keep a detailed list of everything the trust receives and spends. Records should include the amount of checks written or deposited, dates, reasons, names of people or companies involved, and other important information.
  • Keep receipts and notes, even for small expenses. For example, write “$50, groceries, ABC Grocery Store, May 2” in your records, soon after you spend the money.
  • Avoid paying in cash. Try not to pay Rose’s expenses with cash. Also, try not to use an ATM card to withdraw cash or write checks to “Cash.” If you need to use cash, be sure to keep receipts and notes.
  • Getting paid? The trust agreement may say that you can be paid for acting as trustee. If you will be paid, Texas law states that your fee must be reasonable. You may be entitled to be reimbursed for some of the expenses related your work as trustee. Keep detailed records, as you go along, of what work you did, how much time it took, when you did it, and why you did it.