7 Qualities to Look for When Choosing a Trustee

Choosing a trustee is an important part of creating a trust, and it is a decision that deserves some thought.

Most people start with the obvious question: Who do I trust? That’s a good place to start, but it’s not the only question you should ask.

Being a trustee can be a lot of work. Depending on the trust, the trustee may have to manage investments and other assets, pay bills, keep records, communicate with beneficiaries, work with advisors, meet deadlines, and make decisions that aren't always easy.

The person you love the most isn't necessarily the person who is best suited for the job.

Here are seven things I suggest considering when choosing a trustee.

1. They stay calm under pressure.

Trust administration doesn't always go smoothly. There may be unexpected expenses, paperwork that needs to be handled, deadlines to meet, or disagreements among family members. Sometimes a trustee has to make a difficult decision without making everyone happy.

You want someone who can handle those situations without becoming overwhelmed.

Think about how the person handles stress in everyday life. Do they tend to stay level-headed when things go wrong? Do they take the time to understand a problem before reacting? Can they work through a difficult situation without making it more difficult for everyone else?

A trustee doesn't have to have all the answers. But they do need to be able to stay calm enough to figure out what needs to happen next.

2. They're financially responsible.

Your trustee doesn't need to be an investment expert or a financial professional. There are professionals who can help with those things.

But your trustee should be someone who takes financial responsibilities seriously.

That means paying attention to bills and expenses, keeping good records, protecting trust assets, and understanding the importance of budgeting. It also means knowing when something requires professional advice.

Take a look at how the person handles their own financial affairs. Are they responsible? Organized? Careful with important documents and deadlines?

Those everyday habits can tell you quite a bit about how they might approach the responsibilities of being a trustee.

3. They're organized and dependable.

Trust administration can involve a surprising amount of paperwork and follow-up.

There may be documents to gather, deadlines to keep track of, bills to pay, tax returns to coordinate, and questions from beneficiaries or professional advisors that need to be answered.

You want someone who will actually follow through.

If the person you're considering is routinely late, loses important documents, forgets appointments, or puts off paperwork, think carefully before giving that person responsibility for administering your trust.

A trustee doesn't have to be perfect. But they should be dependable and willing to stay on top of things.

4. They can make difficult decisions.

This is one of the qualities people sometimes overlook when choosing a trustee.

A trustee may have to make decisions that a beneficiary doesn't agree with. They may have to say no to a request for money. They may have to decide how an asset should be managed or whether it should be sold. And sometimes family members will have strong opinions about what the trustee should do.

That's part of the job.

You want someone who can listen to different perspectives, consider the facts, and make a thoughtful decision based on the trust and their responsibilities—not simply because someone is putting pressure on them.

This can be especially important when choosing a family member. Someone can be a wonderful sibling, child, or friend and still not be the right person to serve as trustee.

5. They communicate well.

Good communication can go a long way toward preventing misunderstandings and unnecessary family conflict.

A trustee doesn't need to tell every beneficiary every detail about every decision. But they should be willing to communicate appropriately and respond to reasonable questions.

They also need to be comfortable working with the professionals involved in administering the trust. That might include an attorney, accountant, financial advisor, real estate professional, or others.

Someone who avoids difficult conversations or doesn't return calls and emails may not be the best choice for a job that requires ongoing communication.

6. They know when to ask for help.

No one expects a trustee to know everything.

Trust administration can involve legal, tax, investment, real estate, and other issues that are outside the trustee's area of expertise. That's why trustees often work with a team of professionals.

The important thing is that the trustee recognizes when they need help.

A good trustee isn't afraid to say, "I don't know. Let me find out."

In fact, knowing when to ask a question may be one of the most important skills a trustee can have. You want someone who will seek appropriate professional advice rather than guess or try to handle something they don't understand.

7. They're trustworthy and impartial.

Finally, you need to be able to trust your trustee to put the trust's terms and the interests of the beneficiaries ahead of their own personal agenda.

This can become particularly important when family members are involved.

Family history can be complicated. There may be old disagreements, hurt feelings, or strong opinions about who should receive what. A trustee needs to be able to put those issues aside and approach the job fairly.

Before naming someone as trustee, ask yourself whether that person can separate their personal feelings from their responsibilities.

Someone may be a person you love dearly and trust completely in your personal life, but that doesn't automatically mean they will be the best person to administer your trust.

Choosing a Trustee Is a Big Decision

When you're choosing a trustee, don't just ask yourself, "Who do I trust?"

Ask yourself whether that person is calm under pressure, financially responsible, organized, dependable, willing to make difficult decisions, a good communicator, comfortable asking for help, and capable of remaining impartial.

There may not be one obvious choice. Depending on your circumstances, the right trustee might be a family member, a friend, a professional trustee, or another person or institution qualified to take on the responsibility.

The important thing is to think about what the job actually requires—not just who you feel closest to.

After all, you're not simply choosing someone you trust.

You're choosing someone to carry out your wishes and take care of the people you've provided for.

Ready to Put Your Plan in Place?

Choosing a trustee is just one part of creating a thoughtful estate plan. If you don't yet have a revocable living trust, or you're not sure whether your current estate plan still meets your needs, I can help.

Book a Peace of Mind Planning Session with me to sit down together, talk through your goals, and get started on your revocable living trust.

My goal is to make the estate planning process straightforward and give you confidence that your wishes are documented and the people you love will be taken care of.