Watch: How to Choose a Trustee for Your California Trust

Choosing the right trustee is one of the most important decisions you’ll make when creating a revocable living trust. Your trustee will be responsible for managing your assets, distributing them to your beneficiaries, and carrying out your wishes after you pass away or become incapacitated.

This short video from Opelon LLP breaks down what a trustee does and walks through seven practical tips for selecting the right person or entity. Below, we’ve summarized the key takeaways along with additional guidance for California families.

What Is a Trustee?

A trustee is a person, bank, or corporate entity that holds legal responsibility for managing trust assets on behalf of the beneficiaries. The trustee is appointed by the trust creator (also called the grantor or settlor) and is legally bound by a fiduciary duty to act in the best interests of the beneficiaries.

A trustee’s responsibilities include:

• Investing and managing trust assets prudently
• Distributing income and principal to beneficiaries according to the trust terms
• Making decisions about trust property as necessary
• Keeping accurate records and providing accounting to beneficiaries
• Filing any required tax returns for the trust

In most California revocable living trusts, you serve as the initial trustee during your lifetime. If you’re creating a joint trust with your spouse, both of you typically serve as co-trustees, and the surviving spouse becomes sole trustee after the first spouse passes or becomes incapacitated.

The critical question is: who takes over after that? That’s your successor trustee.

7 Tips for Choosing a Successor Trustee

1. Consider the Complexity of Your Trust

If your trust is straightforward,  for example, a single property and a few financial accounts,  a responsible family member or trusted friend may be a good fit. However, if your trust involves business interests, multiple properties, digital assets, or complex tax planning, a professional trustee or trust company may be the better choice.

2. Evaluate Age and Health

Choose someone who is likely to outlive you and remain capable of fulfilling their duties for the duration of the trust administration process. A trustee who is your same age or older may not be the most practical choice.

3. Confirm Willingness and Availability

Serving as a trustee is time-consuming and can be stressful. Before naming someone, have a direct conversation about whether they are willing and available to take on the role. Not everyone is up to the task, and an unwilling trustee can create delays and conflict for your beneficiaries.

4. Assess Qualifications

Consider your candidate’s financial literacy, experience managing assets, and ability to make decisions in the beneficiaries’ best interest. If you’re considering a professional or corporate trustee such as a bank, research their track record, reputation, and fee structure before making a commitment.

5. Watch for Conflicts of Interest

If a family member is both a beneficiary and the trustee, potential conflicts can arise. For example, a trustee-beneficiary may be tempted to make distribution decisions that favor themselves over other beneficiaries. In these situations, appointing a neutral third party — or using a professional trustee — can prevent disputes.

6. Communicate Your Wishes Clearly

Don’t just name a trustee in your trust document and hope for the best. Sit down with your chosen successor trustee and discuss your expectations, goals, and specific wishes. This includes how you want assets distributed, your preferences for healthcare decisions, and how to handle any unique family dynamics. A trustee who understands your intent can carry out your plan more effectively.

7. Name a Backup

Always name at least one backup successor trustee in case your first choice is unable or unwilling to serve when the time comes. Without a backup, your beneficiaries may need to petition the court to appoint a trustee — adding cost, delay, and uncertainty to the process.

Individual Trustee vs. Professional Trustee

For many California families, a combination works well — naming a trusted family member as trustee with a professional advisor or trust attorney available to guide them through the administration process.

Frequently Asked Questions About Choosing a Trustee