Common mistakes to avoid when you've been named Trustee.

Administering a Trust might seem straightforward—gather the assets, pay a few bills, and distribute the rest. Right? Not quite.

In both Kansas and Missouri, Trustees have a legal duty to follow the terms of the Trust and comply with state law. Mistakes during administration can lead to delays, disputes, and even lawsuits. The good news? Most of the common pitfalls are avoidable if you know what to watch for.

Let’s look at the biggest mistakes we see—and how to avoid them.

⚠️ Mistake #1: Ignoring Statutory Requirements

Both Kansas and Missouri have laws that govern how a Trust must be administered. If you don’t follow them, you’re opening the door to legal and financial consequences—even if the error was unintentional.

Here are a few examples:

• Failing to provide a timely notice of Trust existence (required under both KS and MO statutes)

• Skipping required accounting disclosures to beneficiaries

• Not properly identifying and inventorying Trust assets

Even though a Trust might avoid probate, it doesn’t mean it’s free from legal formalities. As Trustee, you are a fiduciary, and the law holds you to a high standard of conduct. Missing deadlines, not keeping records, or failing to carry out basic duties could result in personal liability.

🛠 Tip: Get familiar with the Uniform Trust Code (UTC), which is adopted in both Kansas and Missouri, and consult with a trust attorney to ensure you’re meeting your legal obligations.

⚠️ Mistake #2: Failing to Notify the Beneficiaries

One of the most common oversights in Trust administration is failing to properly notify the beneficiaries. In both Kansas and Missouri, beneficiaries are entitled to know:

• That the Trust exists

• That they are named beneficiaries

• Who the Trustee is

• And that they have a right to request information and an accounting

If you don’t notify them, you could be accused of hiding information or mismanaging the Trust—especially if disagreements arise later. Even if you have no bad intentions, silence can be interpreted as misconduct.

🛠 Tip: As soon as you begin administering the Trust, send out formal notices to all current beneficiaries and qualified remainder beneficiaries. Keep a copy of every notice sent and document when it was delivered.

⚠️ Mistake #3: Poor Communication (or No Communication)

You don’t have to provide a minute-by-minute update—but failing to communicate at all is one of the fastest ways to erode trust and create conflict among beneficiaries.

We get it—some situations are messy. There may be siblings who don’t get along, stepchildren with questions, or long-distance heirs. Still, as Trustee, you’re legally and ethically expected to communicate.

This includes:

• Providing regular updates on the status of administration

• Answering reasonable questions from beneficiaries

• Sharing copies of the Trust upon request

• Responding to concerns before they escalate into disputes

🛠 Tip: You don’t have to go it alone. If communicating with the beneficiaries feels overwhelming or tense, an attorney can help you draft updates or serve as an intermediary.

⚠️ Mistake #4: Making Early or Improper Distributions

It’s tempting to start distributing assets quickly—especially if the beneficiaries are pressuring you—but doing so before settling debts, taxes, or confirming the rightful shares can lead to major legal headaches.

For example:

• If a tax bill comes due after you’ve already distributed everything, you may be personally liable for paying it.

• If someone challenges the Trust or claims a larger share, you may have to undo distributions or fund a settlement out of pocket.

🛠 Tip: Wait to distribute assets until you’ve confirmed all debts, obligations, and tax issues are resolved—and you’ve documented your steps.

⚠️ Mistake #5: Failing to Get Professional Help When Needed

Trustees often try to “DIY” administration to avoid legal fees—but that can be a costly mistake. Misinterpreting the Trust, filing the wrong tax form, or missing a deadline can result in much higher expenses down the road.

A CPA, attorney, or financial advisor isn’t just helpful—they can protect you from liability and make sure everything is handled correctly the first time.

🛠 Tip: Build a professional team around you early. It shows the beneficiaries you’re taking your duties seriously, and it helps you stay compliant.

⚠️ Mistake #6: Mismanaging Trust Assets

As Trustee, you have a duty to prudently manage and preserve the Trust assets. This includes:

• Keeping property insured and well-maintained

• Making sound investment decisions (not letting assets sit idle or investing too aggressively)

• Avoiding self-dealing or using Trust property for personal benefit

Failure to manage assets properly can lead to loss of value—and potential lawsuits from beneficiaries.

🛠 Tip: If you’re unsure how to manage an investment or piece of real estate, hire a professional to help. You can (and should) delegate wisely when needed.

⚠️ Mistake #7: Not Understanding the Terms of the Trust

Every Trust is different. Even if you’ve served as Trustee before, you can’t assume the rules are the same this time around. Misreading the distribution terms, skipping over special instructions, or misunderstanding conditional gifts can lead to legal challenges or violated fiduciary duties.

🛠 Tip: Read the Trust document carefully, and ask a trust attorney to review it with you so nothing gets missed.

⚠️ Mistake #8: Failing to Document Your Actions

If a beneficiary ever questions your decisions, you’ll need a paper trail. Without solid records, it becomes a “your word vs. theirs” situation—and courts don’t take that lightly.

🛠 Tip: Keep a running log of every major decision you make, along with supporting documents like receipts, letters, emails, and bank statements.

⚠️ Mistake #9: Overlooking Digital Assets

More people today have online accounts, cryptocurrency, digital photo storage, and other online assets. If these aren’t included in the inventory or managed properly, they can be lost or mishandled.

🛠 Tip: Look into whether the Trust includes digital assets or whether the grantor left access credentials separately. Kansas and Missouri both recognize certain digital asset laws under the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA).

Worried You’re Missing Something? Let’s Talk.

At The Probate Law Center, we guide Trustees in Kansas and Missouri through the administration process from start to finish. Whether you’re just getting started or need help correcting a misstep, we’re here to protect you and the integrity of the Trust.

Schedule a consultation at www.ksmoprobate.com to learn how we can help.

Disclaimer: This post is for informational purposes only and does not constitute legal advice. Every Trust is different. For legal guidance specific to your situation, please consult a qualified attorney.