Leasing, Law suits, Contracts

This section discusses a trustee’s powers regarding leasing, litigation, and contracting. Trustees can lease trust property for customary terms to ensure income generation but may be held liable for neglect if they fail to make the property productive. Leases made during the trust term remain binding even after the trust terminates unless the trust’s end date was predetermined, in which case leases cannot extend beyond that date. Trustees cannot make leases starting at future dates or bind the estate with renewal covenants exceeding their authority. Customary lease terms, such as 20 years for business or farming property, are common, with specific provisions outlined in the trust instrument. Trustees are also empowered to sue or defend on behalf of the trust and are personally liable for contracts unless they act within their designated powers, ensuring the estate is appropriately bound.