Choosing the Right Trustee

⚖️ What Does a Trustee Do?

A trustee steps into your shoes when you can’t act for yourself. Depending on your trust, their responsibilities may include:

• Paying bills, taxes, and ongoing expenses
• Managing bank accounts, investments, and property
• Maintaining insurance and safeguarding assets
• Communicating with beneficiaries and answering questions
• Keeping accurate records and receipts
• Coordinating with attorneys, accountants, and advisors
• Distributing assets according to your instructions

A trustee has a legal duty to act in the best interests of the trust and its beneficiaries, not according to personal preference or pressure from others. This decision deserves structure.

⚖️ The Qualities of a Strong Trustee

A trustee does not need to be a financial expert — but they must be dependable.

Strong trustees are typically:

• Honest and ethical
• Organized and detail-oriented
• Calm under pressure
• Fair and impartial
• Clear communicators
• Willing to ask for professional help

Integrity and reliability matter more than technical skill. Financial professionals can be hired. Character cannot.

⚖️ Family Member vs. Professional Trustee

There’s no one-size-fits-all answer. The right choice depends on your goals, family dynamics, and the complexity of your estate.

Option 1: Family Member or Trusted Friend

This is the most common choice — and sometimes the best one.

Potential Advantages

• Familiar with your family and values
• Often willing to serve at little or no cost
• May be more flexible and accessible

Potential Challenges

• Emotional involvement can cloud judgment
• Lack of financial or administrative experience
• Risk of favoritism or family tension
• Added stress during an already difficult time

Best for:
Simpler estates with a responsible, organized, emotionally steady individual.

Option 2: Professional or Corporate Trustee

Examples include banks with trust departments, trust companies, or law firms.

Potential Advantages

• Neutral and impartial
• Experienced with complex administration
• Strong recordkeeping and compliance
• Reduces family conflict
• Provides long-term continuity

Potential Challenges

• Fees (often a percentage of assets)
• Less personal familiarity
• More formal processes

Best for:
Blended families, complex estates, long-term trusts, or situations where neutrality is critical.

Option 3: Hybrid or Tiered Approach

Some families use a combination:

• A family member and a professional serve together
• A family member serves first, with a professional as successor
• A professional handles finances while a family member manages personal decisions

This approach balances personal insight with technical expertise and provides backup if circumstances change.

⚖️ Red Flags When Choosing a Trustee

Avoid naming someone who:

• Struggles with their own finances
• Misses deadlines or avoids paperwork
• Has ongoing conflict with beneficiaries
• Is easily influenced or pressured
• Is already overwhelmed with responsibilities
• Has legal, credit, or substance issues

Red flags don’t resolve themselves over time. Choose someone dependable from the start.

⚖️ Always Name a Successor Trustee

Your plan should never rely on one person alone.

A successor trustee steps in if your primary trustee:

• Cannot serve
• Declines the role
• Becomes incapacitated
• Passes away

Naming at least one — and often two — backups ensures continuity and avoids court involvement.

⚖️ A Simple Goal-Matching Exercise

When deciding, ask which option best supports your priorities:

• Maintaining family harmony
• Ensuring strict financial oversight
• Avoiding burdening loved ones
• Preserving neutrality
• Managing real estate or business interests
• Supporting young or financially inexperienced beneficiaries
• Providing long-term continuity

The trustee who best matches your goals, not just your relationships, is usually the right choice.

⚖️ Common Trustee Selection Mistakes

Families often run into trouble by:

• Choosing the oldest child by default
• Naming co-trustees who don’t work well together
• Selecting someone who cannot say “no”
• Confusing closeness with capability
• Failing to name backups

A trustee role is a responsibility — not an honorific.

⚖️ How to Set Your Trustee Up for Success

You can make the role significantly easier by providing:

• A clear, organized estate planning binder
• Updated lists of accounts and contacts
• Access instructions for digital assets
• Names of advisors they can rely on
• Context for major decisions you’ve made

Preparation reduces confusion and conflict later.

⚖️ Final Takeaway

Your trustee plays a central role in whether your estate plan works smoothly or becomes a source of stress.

The right trustee:

• Follows your instructions faithfully
• Acts impartially
• Communicates clearly
• Keeps records organized
• Protects your beneficiaries

Choose someone trustworthy, capable, and aligned with your goals — and give them the tools they need to succeed.