When people hear about the benefits of a living trust, they are often drawn to creating one as part of their estate plan. However, an equally important decision is choosing the right successor trustee. The person or institution you select will be responsible for managing your trust if you become incapacitated or after you pass away.
Quick Answer: How Do You Choose a Successor Trustee?
A successor trustee is the person or institution who manages your living trust if you become incapacitated or pass away. When choosing a successor trustee, consider:
- Trustworthiness and integrity
- Financial and organizational ability
- Willingness to communicate with beneficiaries
- Ability to remain impartial
- Time available to handle administrative responsibilities
What Is a Successor Trustee?
A successor trustee is the person or institution named in a living trust to manage trust assets if the original trustee becomes incapacitated or dies. The successor trustee is responsible for administering the trust, managing property, paying expenses, filing taxes, and distributing assets according to the instructions contained in the trust document.
What Does a Successor Trustee Do?
When you create a revocable living trust, you typically serve as the initial trustee while you are alive and capable. If you become incapacitated or pass away, your chosen successor trustee steps in to take over.
The successor trustee becomes responsible for managing trust property, paying expenses, filing tax returns, and eventually distributing assets to your beneficiaries according to the instructions in your trust.
A successor trustee must follow the directions in the trust document and comply with California law. Because the role carries legal and financial responsibilities, it is important to choose someone capable of handling these duties carefully.
What Qualities Should You Look for in a Successor Trustee?
Trustworthiness is essential, but several other qualities are equally important.
- Integrity and honesty
- Reliability and attention to detail
- Strong communication skills
- Ability to remain impartial among beneficiaries
- Time and organizational ability to manage responsibilities
Key Takeaways
- The successor trustee manages your trust after incapacity or death.
- The role involves significant legal and financial responsibilities.
- Family members may serve effectively but can create conflicts.
- Professional trustees offer experience and neutrality.
- California-specific issues such as Proposition 19 and digital assets may affect trust administration.
Frequently Asked Questions
Can a beneficiary also serve as a successor trustee?
Yes. Many estate plans allow a beneficiary, such as an adult child, to serve as trustee. However, the trustee must still follow the trust instructions and treat all beneficiaries fairly.
How many successor trustees should I name?
Many estate plans name one primary successor trustee along with one or two backup trustees in case the first choice cannot serve. We recommend that you name one primary successor trustee with two backup trustees.
Can I appoint a professional trustee instead of a family member?
Yes. Banks, trust companies, and licensed California private fiduciaries can serve as professional trustees. They provide experience and neutrality but charge administrative fees.
We Are Here to Help
If you would like guidance choosing a successor trustee or creating a comprehensive estate plan, contact Litherland, Kennedy & Associates in Campbell, California. Call 408-356-9200 or complete our contact us form.
