You Created the Trust. But Who Do You Trust to Run It?

The Estate Planning Decision Most People Overlook

When people create a Revocable Living Trust, they naturally spend a lot of time thinking about who gets what. Who gets the house? How much should each child receive? What happens if a beneficiary passes away? At what age should the grandchildren receive their inheritance?

Those are all important questions. But there is another decision that I believe is just as important, and sometimes even more important:

Who are you going to trust to actually carry out your plan?

That person is your Successor Trustee.

While you are alive and able to manage your own affairs, you will typically serve as Trustee of your Revocable Living Trust. You remain in control of your property, your accounts, and your financial decisions just as you were before. Your Successor Trustee is the person you choose to step in when you can no longer serve, whether because of incapacity or after your death. In many ways, you are handing that person the keys to everything you worked a lifetime to build.

Your Successor Trustee may be responsible for managing your bank and investment accounts, maintaining or selling your home, paying bills and expenses, working with attorneys and accountants, filing tax returns, communicating with your beneficiaries, and ultimately making sure your property is distributed according to your wishes.

If assets are going to remain in Trust for children or grandchildren, that responsibility can continue for years. Your Trustee may be deciding when a beneficiary should receive money, how much should be distributed, and whether a particular request is consistent with the instructions you left behind.

That is why I tell clients: being named Trustee is not an honorary title. It is a job. And you need to choose the right person for that job.

Your Oldest Child Isn't Automatically Your Best Trustee

Parents sometimes name their oldest child as Successor Trustee almost automatically. "She's the oldest. I'll put her in charge." But birth order isn't a qualification.

Imagine a mother with three adult children. She names her oldest daughter as Successor Trustee because that is what seems natural. The problem is that her oldest daughter has never been particularly good with money, tends to avoid difficult conversations, and is already overwhelmed managing her own life. Her youngest daughter, on the other hand, manages the finances in her household, is organized, communicates well, and is the sibling everyone already calls when something needs to get done. Mom passes away, and the oldest daughter takes over.

Bills go unpaid. Important paperwork gets ignored. The house isn't properly maintained, and a small repair turns into a much larger and more expensive problem. Investment accounts sit untouched. The other siblings repeatedly ask for information and receive little or no response. Then the oldest daughter starts making decisions without explaining them. One sibling believes money is missing. Another hires an attorney. Accusations start flying. Legal fees begin eating into the inheritance, and siblings who once spent holidays together stop speaking.

Eventually, someone asks the court to remove their sister as Trustee. The sad part?

There may have been absolutely nothing wrong with Mom's Trust. She simply put the wrong person in charge of it.

The younger daughter may have been the better choice all along. A good estate plan isn't just about deciding what happens to your assets. It is also about putting the right people in place to make sure your wishes are actually carried out.

Choosing the Right Successor Trustee for Your Family

When it comes to choosing a Successor Trustee, there are several options, and the right choice depends on your family, your assets, and the complexity of your estate plan. For many people, a trusted family member or friend is the best choice because they know you, understand your family, and know what is important to you. In other situations, Co-Trustees may make sense, allowing two people with different strengths to share the responsibility. For more complex estates, or when family conflict or neutrality is a concern, a professional or corporate Trustee may provide the experience, objectivity, and continuity your Trust needs.

There is no single answer that works for every family. The important thing is to understand the responsibilities involved and the advantages and disadvantages of each option before deciding who should be entrusted with your legacy.

Making the Right Decision

At The Law Office of Jeffrey Blair, I help you work through these important decisions so you understand your options, the pros and cons of each, and how your choice could affect your family when the time comes.

Sometimes the person you initially planned to name is absolutely the right choice. Other times, after we talk through the responsibilities, personalities, family dynamics, and alternatives, a better choice becomes clear. That is what thoughtful estate planning is about: making well-informed decisions today so your family isn't left dealing with unnecessary problems tomorrow.

If you already have a Trust, or you're thinking about creating one, ask yourself: "Did I simply name someone I trust, or did I choose the right person for the job?"

If you're not sure, let's talk about it. During a Peace of Mind Planning Session, we'll work through these decisions together and create an estate plan designed not only to protect what you have built, but to make things as clear and manageable as possible for the people you love.