What Documents Should a Trustee Keep on File

Trustees are frequently told to "keep good records" without much specificity about what that actually means. The following is a complete breakdown organized by category — with guidance on retention periods where applicable.

Trust Instrument and Amendments

The original signed trust agreement and every amendment must be retained permanently. These are the governing documents for every decision you make. If you are serving as successor trustee, obtain the originals or certified copies from the prior trustee or the drafting attorney.

Also retain any letter of wishes, statement of intent, or informal guidance from the settlor if such documents exist. They are not legally binding in most jurisdictions but may be relevant context in a dispute.

Financial Records

Retain all bank and brokerage statements for every trust account — permanently, or at a minimum for the full duration of your service plus the applicable statute of limitations in your jurisdiction (typically 3-6 years after the trust terminates). The same applies to investment account statements, tax returns, and K-1s.

Keep all receipts for trust expenses, invoices from service providers, and documentation of any transactions involving trust assets. If an expense is ever challenged, you need to show not just that it was paid but that it was a legitimate trust expense.

Asset Documentation

For each asset held in the trust, retain the documentation that establishes ownership and cost basis: deeds for real property, stock certificates or account statements showing purchase price and date, appraisals, vehicle titles, and entity formation documents for any LLC or partnership interests.

Cost basis documentation is particularly important. If a trust asset is eventually sold or distributed, the capital gain or loss calculation depends on the original cost basis and the date of acquisition. Without this documentation, you may be unable to accurately report the transaction.

Distribution Records

Every distribution to a beneficiary should be documented with: the amount and date, the character of the distribution (income or principal), the payment method and reference number, a copy of the distribution letter or check, and evidence of receipt by the beneficiary when available.

Communications

Retain significant correspondence with beneficiaries, co-trustees, attorneys, accountants, and other advisors. "Significant" means anything that documents a decision, a demand, a disclosure, or a dispute. You do not need to keep every routine email, but you should keep anything that could be relevant if your administration is ever challenged.

Annual Accountings

Retain each annual accounting you have prepared, together with evidence of its delivery to beneficiaries (a signed receipt, certified mail confirmation, or email with delivery confirmation). If beneficiaries have signed approvals or releases, those are particularly valuable and should be kept permanently.