If you have a living trust, or you are thinking about creating one, one of the most important decisions you will make has nothing to do with the wording of the document.

It is who you trust to carry out the plan.

While you are alive, have capacity, and serve as trustee of your own revocable living trust, you generally remain in control of the trust assets.

The important question is who should step in as your successor trustee if you can no longer serve or after your death.

What Does a Successor Trustee Do?

A successor trustee is the person or institution named to take over management of the trust when the current trustee can no longer serve.

Depending on the circumstances, the successor trustee may need to:

• Identify and protect trust assets
• Manage bank and investment accounts
• Handle real estate or other property
• Pay appropriate expenses and taxes
• Keep records
• Communicate with beneficiaries
• Work with attorneys, accountants, financial advisers, or other professionals
• Carry out the distribution instructions in the trust

California Courts describes a living trust as an arrangement in which a successor trustee is eventually responsible for managing trust assets for the benefit of the named beneficiaries.

The role can be straightforward in some families and highly demanding in others.

That is why choosing a trustee should involve more than deciding who you trust personally.

The Right Trustee Is Not Always the Obvious Choice

Many people automatically name their oldest child, closest sibling, or the family member everyone thinks of as the most responsible.

Sometimes that is exactly the right choice. Sometimes it is not.

A good successor trustee should generally be organized, dependable, willing to follow instructions, and capable of making decisions under pressure.

They may also need to communicate with beneficiaries who are grieving, frustrated, or disagreeing with each other.

That can require patience and good judgment.

The person you love most is not always the person best suited to handle that responsibility.

A Trustee Does Not Have to Know Everything

Some people worry that the person they choose must be a financial expert.

That is not necessarily the case.

A trustee can obtain professional help when appropriate. That may include assistance from an attorney, accountant, financial adviser, property manager, or other professional.

What matters is whether the trustee has enough judgment to recognize when help is needed and enough organization to manage the process responsibly.

Questions to Ask Before Naming a Successor Trustee

Before choosing someone, consider more than whether you trust them.

Ask yourself:

• Does this person have the time to take on the role?
• Are they organized enough to keep records and follow through?
• Can they make difficult decisions without becoming overwhelmed?
• Can they communicate clearly with family members?
• Are they likely to still be available when the role is needed?
• Would naming them create tension with other beneficiaries?
• Do they live far away, and would that create practical challenges?
• Who should serve if your first choice cannot or will not act?

Naming one or more backups can be just as important as naming your first choice.

A person who seems perfect today may be unable or unwilling to serve years from now.

California law recognizes that a vacancy can occur if a trustee dies, resigns, is removed, or cannot continue to serve, which is another reason a succession plan matters.

Should You Name Co-Trustees?

Some families consider naming two people to serve together.

That can work well in the right situation.

For example, one person may be especially strong with finances while another understands the family dynamics better.

But co-trustees can also create complications if they disagree, have different communication styles, or live in different places.

If you are considering co-trustees, think carefully about how decisions will be made and whether requiring two people to act together will make administration easier or harder.

When a Professional Trustee May Make Sense

For some families, the best choice is not a relative at all.

A professional fiduciary or corporate trustee may be worth considering when:

• The trust owns complex assets
• Family conflict is likely
• Assets will remain in trust for a long period
• No family member is well suited for the role
• Beneficiaries need long-term management or protection

Professional administration has costs, so it is not the right solution for everyone.

The important point is that you have options.

Talk to the Person Before You Name Them

This is a step people sometimes skip. If possible, talk to the person before naming them as successor trustee.

Explain what you are asking them to do. Let them ask questions. Make sure they are comfortable with the responsibility.

A trustee can decline to serve, so it is far better to learn that now than after the role is needed.

Your Trustee Choice Deserves More Than a Blank on a Form

Choosing a successor trustee is part of designing a plan that can actually function when your family needs it.

At LSG Legal, we talk through not only who you can name, but what the role may require and whether that person fits your family’s circumstances.

Schedule a Peace of Mind Planning Session to begin designing a plan around the people in your life.