How To Choose a Trustee

Choosing a trustee is one of the most important decisions you'll make when setting up a trust. This is the person — or institution — responsible for managing the assets in your trust, so you want someone who's capable, trustworthy and aligned with your values.

The wrong choice could lead to mismanagement, conflict among beneficiaries or your wishes not being carried out the way you intended.

What a trustee actually does

Before picking someone, it helps to understand what's expected of a trustee. They're legally responsible for carrying out the instructions in the trust — and doing so in the best interest of the beneficiaries. 

Key responsibilities include:

• Managing assets: making smart financial decisions that help preserve and grow the trust's value
• Keeping records: tracking every transaction and sharing regular updates with beneficiaries
• Distributing assets: following the trust's instructions to the letter when it comes to who gets what and when
• Staying in touch: being responsive and communicative with beneficiaries, especially when questions or issues come up
• Following the law: ensuring everything is handled in line with applicable legal requirements

What to look for in a trustee 

So who's actually a good fit for this role? You'll want someone who:

• Is trustworthy and ethical: This one's obvious but essential. You're putting a lot of responsibility in their hands.
• Is good with money: They should be comfortable with investments, financial decisions and managing resources wisely.
• Understands your values: Someone who gets where you're coming from and will carry out your wishes the way you intended.
• Is fair and impartial: This is especially important if there are multiple beneficiaries. The trustee should be able to manage potential conflicts without picking sides.
• Is communicative and available: You want someone who will keep everyone in the loop and stick with you for the long haul.
• Knows the legal landscape: Ideally, they're familiar with any local rules or regulations that could come into play.

Who should you choose? 

You might be thinking about a trusted family member or friend, which can be a great option. They likely know your family dynamics and values, and the needs of your beneficiaries. But make sure they're up for the challenge — especially when it comes to staying neutral and handling any potential conflict.

On the other hand, you could go with a professional trustee, like a bank, trust company or attorney. They bring experience, financial know-how and objectivity to the table. Of course, they do charge for their services, but sometimes that fee is worth the peace of mind.

Another option? Co-trustees. You can pair a family member with a professional to get the best of both worlds — personal insight plus professional oversight. This kind of team can also provide checks and balances along the way.

Final thoughts on choosing a trustee in 2025

Whether you go with a loved one, a professional or both, take your time with this decision. You're choosing someone to help protect and manage your financial legacy — one of the biggest roles in your estate plan. 

Look at different scenarios, ask questions, and make sure whoever you choose understands your values, your vision and the responsibility they're taking on. 

Need a simpler way to consistently reach more new prospects? The IndustryNewsletters™ digital marketing platform can help your firm create content marketing strategies filled with engaging articles that get your newsletters noticed. CLICK HERE to find out how we can help you start launching easy email newsletter campaigns today.