Knowing how to choose a trustee is one of the most important decisions you’ll make when setting up your trust. The trustee’s role goes far beyond simply holding assets - it’s about gathering, managing, and protecting what you’ve built for your loved ones.
With a revocable living trust, you may serve as your own trustee during your lifetime, giving you full control of your assets. It’s equally important, however, to name a successor trustee who can step in if you become incapacitated or after you pass away.
Your choice of trustee deserves real thought and this article will help you understand the role of a trustee, the qualities to look for in a trustee, and how to set your trustee(s) up for success.
A successor trustee is responsible for carrying out your wishes on behalf of your beneficiaries. Key trustee responsibilities include:
In short, your trustee is the person who keeps everything running smoothly when you’re no longer able to do so. It’s a role that requires not only financial competence, but also reliability, organization, and a deep sense of responsibility.
When evaluating potential trustees, consider the following qualities:
A trustee must handle investments, accounts, and transactions accurately. Choose someone comfortable with financial tasks - someone who won’t be intimidated by statements, spreadsheets, or balancing ledgers.
Trustees are responsible for recordkeeping, paying bills on time, and ensuring that distributions are handled correctly. This is not a ceremonial title; it’s a job that requires diligence and consistency.
A trustee has a fiduciary duty to act solely in the best interests of your beneficiaries. This means putting aside personal opinions or family politics and following your instructions as written. Integrity is non-negotiable.
Knowing how to find a trustee with these qualities can greatly increase the likelihood that your trust will be managed effectively, minimizing stress for your beneficiaries.
Now that we know the ideal qualities of a trustee, where do we look when it’s finally time to name names?
Family dynamics can make or break the trust administration process - especially when emotions are elevated in times of grief. Even the most financially savvy person may struggle if relationships among beneficiaries are strained.
Picking a trustee who doesn’t have a good relationship with the beneficiaries is potentially setting them up to fail. Even if they do everything right, the beneficiaries may not be happy because of that fractured relationship.
Also, a common misconception is that the oldest child should automatically be the trustee. Age alone doesn’t guarantee the skill set needed to fulfill this role. Instead, evaluate each potential trustee based on their abilities and personality traits to find the best fit for your family.
If you’re considering naming more than one trustee, think carefully about how those individuals communicate and cooperate with each other. Co-trustees can work well if they get along and share information openly.
The trust can even be drafted so that only one signature is needed to act on behalf of the trust, allowing co-trustees to divide responsibilities efficiently. But if there’s tension or poor communication, co-trusteeship can lead to unnecessary conflict and delays.
Carefully considering family relationships and dynamics will help you make an informed choice when choosing a trustee who can administer the trust smoothly.
Not everyone has a family member or close friend suited for the role. Or, you may simply not want to place that burden on someone you love. In those cases, a corporate trustee can be an excellent solution.
A corporate trustee is a professional entity that manages trusts impartially and with expertise, often handling responsibilities such as asset management, investments, and legal compliance.
Keep in mind, being a trustee is a job. Corporate trustees charge fees for their services, usually a reasonable rate relative to the work involved. While this can be a drawback for smaller trusts, the professionalism and impartiality they provide can be invaluable for larger estates or complex family situations.
KF Law Group will often combine approaches - naming individual trustees first, then designating a corporate trustee as a backup. That way, if no one is able or willing to act when the time comes, the trust still has a capable and qualified administrator.
Even the best-chosen trustee will struggle without clear guidance. A well-drafted trust makes their job easier and reduces stress for everyone involved.
Here are a few ways to set your trustee up for success:
A thoughtful structure not only helps the trustee, but also prevents conflict among beneficiaries and ensures your legacy is handled exactly as you intended.
Choosing a trustee isn’t just a box to check - it’s about ensuring your family’s future is managed with care, clarity, and respect. Take time to weigh the options, consider family relationships, and evaluate whether an individual or corporate trustee best fits your situation.
At KF Law Group, we help families make these decisions every day. Our goal is to guide you toward a plan that protects your loved ones and preserves your peace of mind.
If you’d like to discuss your trustee options or ensure your trust is structured for long-term success, we’re here to help. Contact our team today to schedule a consultation.