P.R. Laws tit. 32, § 3352t
Upon acceptance of trusteeship, the trustee is required to:
(a) Administer the trust in good faith in accordance with the terms and purposes thereof, the provisions of this chapter, and the best interest of the beneficiary, while ensuring that all actions necessary to achieve the purposes of the trust are taken;
(b) within a reasonable timeframe after accepting the trusteeship or receiving the trust property, review trust property and, if necessary, make decisions related to the retention and disposition of assets in order to properly fulfill the purposes, terms, and distribution requirements of the trust, as well as decisions related to other circumstances of the trust, and to the fulfillment of the requirements of this chapter.
(c) make an inventory of the trust property and rights thereon before beginning to discharge the trustee duties and before making the restitution to the beneficiary upon termination thereof.
(d) invest and administer the trust property solely in the interests of the beneficiaries;
(e) if a trust has two or more beneficiaries, act impartially in investing and administering the trust property, giving due regard to the beneficiaries” respective interests;
(f) exercise reasonable care and skill as a prudent and reasonable person would when administering the trustee’s own affairs; and, if the trustee has special skills or expertise; or if the trustee is named trustee in reliance upon the trustee’s representation that the trustee has special skills or expertise, the trustee shall use such special skills or expertise.
(g) in investing and administering the trust property, a trustee incur only in costs that are appropriate and reasonable in relation to such property, the purposes of the trust, and the skills of the trustee;
(h) not delegate to other persons the performance of acts that he could reasonably be required to perform personally;
(i) delegate investment and asset management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee has the duty to exercise reasonable care, skill, and caution in the following:
(1) Selecting an agent;
(2) establishing the scope and terms of the delegation consistent with the purposes and terms of the trust; and
(3) periodically reviewing the agent’s actions in order to monitor the agent’s compliance with the terms of the delegation.
In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation. By accepting the delegation of the duties from the trustee of a trust created under this chapter, the agent submits to the jurisdiction of the courts of Puerto Rico.
The trustee shall be required to notify in writing the contents of this section to the agent to whom the trustee is delegating. A trustee who meets the requirements of this section is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the action was delegated.
(j) have the funds or property of the trust in separate accounts, so that they may never be confused or mixed-up with others that are not part of the trust;
(k) administer the interests of the beneficiary of income and the beneficiary of principal with due impartiality;
(l) dispose of the trust property only in the manner set forth in the trust;
(m) provide the beneficiary, upon his request at reasonable times, with the distributions or payments, as well as complete and accurate information as to the nature and amount of the trust property, and allow the beneficiary or a person duly authorized by him to inspect the subject matter of the trust, accounts, vouchers, and other documents relating to the trust;
(n) take reasonable steps to enforce claims of the trust against third parties and to defend claims against the trust when these could result in losses thereto, unless it is reasonable not to under the circumstances;
(o) keep and render clear and accurate accounts regarding the administration of the trust in accordance with the trust instrument. If the document fails to provide therefor, a report on those accounts must be provided to the beneficiary at least once a year and at the termination of the trust, regardless of the reason. If the trustee fails to keep accounts or if the same are not clear and accurate, the trustee shall be liable for any losses or expenses attributable to the trustee’s omission. The trust shall remain in effect until a final account is rendered; and
(p) dispose of all the remaining trust property upon its termination through the appropriate alienation, in accordance with the terms of the trust instrument.
History —Aug. 31, 2012, No. 219, § 27.