HOW TO CHOOSE A TRUSTEE FOR YOUR ESTATE PLAN

HOW TO CHOOSE A TRUSTEE FOR YOUR ESTATE PLAN

Choosing a Trustee to name in the Living Trust document of your estate plan is important to give you the comfort of knowing that your wishes will be carried out, especially since your Trustee may need to step forward while you are still alive. It is more and more common for people to go into assisted living or other nursing care prior to passing away, so a trust is the best way to protect your pets in those situations.   

Trustee vs Personal Representative

Essentially a trustee applies if you have a trust, and a Personal Representative (Executor) applies if you have a will. 

A trustee manages a trust's assets during the grantor's life (if incapacitated) and after death, operating outside of court supervision, while a personal representative (or executor) is appointed by a court to manage a deceased person's estate through the probate process. Both are fiduciaries, but a trustee's duties begin based on the trust's terms (potentially while the grantor is still alive), and a personal representative's duties begin only after the person has passed away and the court has approved their appointment. 

Key differences of a Trustee vs Personal Representative (Executor)

Feature	Trustee	Personal Representative
Governing Document	Trust	Will
Court Supervision	Typically none required for management	Required for the entire probate process
When Duty Starts	Can be during grantor's lifetime or after death	Only after death and court appointment
Primary Purpose	To administer the trust's assets	To settle the deceased's final affairs and distribute the estate
Pets	To ensure wishes for pets are carried out by the caregiver, oversee care of pets in the interim before the caregiver arrives & disburse funds in accordance with the trust.	To notify pet caregiver and oversee one time disbursement of pet care fund if one is designated in the will.

Qualities of a good trustee

The trustee has a fiduciary duty to act in the beneficiaries' best interest and manage the trust according to its terms.

Essential qualities include: 

• Trustworthiness: You must have complete confidence in the person you appoint, as they will have significant control over your assets while you may still be alive as well as after death.

• Availability: Serving as a trustee requires a time commitment, especially for complex trusts. A good candidate will have the time to dedicate to the role.

• Organization and work ethic: You want someone who will follow through on their duties in a timely and orderly manner.  Timeliness is especially important as there may be deadlines involved.

• Good judgment: The trustee should be able to make sound, impartial decisions, even if they lack specific legal or financial expertise.

• Financial acumen: While not essential for all trusts, it is helpful if the trustee has a basic understanding of money management, finances and investments. 

• Pet Care:  The person should know you and your pets well enough to care that they are properly cared for and protected from going into a shelter or being euthanized.  It is also especially important that your trustee will ensure that immediately when needed, he/she will make sure your pets are cared for until your designated caregiver is notified and is able to pick up your pets.

Individuals vs. professional trustees

If you do not have an individual you want to ask to serve as your trustee, you can consider a professional which commonly would be a law firm.

	Individual Trustee (e.g., family, friend)	Professional or Corporate Trustee
Pros	Familiar with your family dynamics and values. May work for free or for a lower fee.	Offers specialized expertise in law and finance. Provides stability and oversight.* Is impartial and has a formal structure for decision-making.
Cons	Lacks professional expertise. May be overwhelmed by the task, especially for a complex or long-term trust.* Could face conflicts of interest or pressure from other family members.* May create family friction.	Can be more expensive, charging an annual fee. Can be less flexible and difficult to remove.* May lack the personal touch or intimate knowledge of your family's needs. * May lack the love of animals and the sense of urgency to ensure your pets are immediately cared for until your caregiver is notified.

Important considerations for your choice

• Complexity of the trust: For a very simple trust, a trusted family member may be fine. For a complex or long-term trust, a professional may be more suitable.

• Family dynamics: An individual trustee can become a source of conflict if they show favoritism or are perceived as acting unfairly.

• Appoint co-trustees: You can appoint two or more people to serve as co-trustees to share the responsibilities and provide checks and balances.

• Name successor trustees: Always name backup or successor trustees in case your initial choice is unable or unwilling to serve.

• Give authority to hire experts: If you choose an individual, give them the authority to hire professionals (e.g., lawyers and accountants) to assist them.

• Do not delay: Finalize your estate planning documents, even if you are struggling with this decision. You can always amend your documents later if needed. 

Have an open conversation

No matter who you choose, have an open and honest conversation with the individual or company to ensure they understand the role and are willing to serve. 

Disclaimer: This information is for general informational purposes only and is not legal advice. You should consult with an estate planning attorney to get advice regarding your specific situation.