You’ve spent years building a family along with your business, your home, or the nest egg you plan to pass on, and now it’s time to ensure those hard-earned assets are protected. Trusts are one of the most elegant ways to do that. But before you draft yours, you need to consider who is going to manage your trust. Aside from creating a trust for your estate, deciding who the trustee will be is one of the most important decisions you can make. But how do I know who to choose? And do my spouse and I create separate trusts or have a joint trust? Continue reading to find the answers to your questions and to learn more about trusts and selecting the right trustee.
Why selecting the right trustee is essential
A trustee holds a fiduciary role, meaning they must act with honesty, loyalty, and prudence on behalf of beneficiaries. Under the Uniform Trust Code (UTC), trustees must keep beneficiaries reasonably informed, keep assets separate from personal funds, and invest wisely based on the trust’s purpose. You’re making a smart and thoughtful decision by choosing to create a trust for your loved ones. But if you are careless in selecting a trustee to manage your trust, then all of your forethought and, quite possibly, the estate you worked so hard to build could be in serious jeopardy. Picking the right trustee is like choosing the right successor captain for your ship. If they flub the job, the seas will get choppy quickly.
Qualities to look for in a trustee
When thinking about who to nominate, consider these soft and strong attributes:
- Trustworthiness: This person has access to everything, including your home, investments, and legacy.
- Financial savvy: Knowing how to manage a high school budget isn’t enough. You want someone who can follow budgets, hire accountants if needed, and make wise distribution decisions.
- Time and availability: Trustees handle distributions, tax filings, communications with beneficiaries, and more. They need bandwidth and dedication.
- Communication skills: Silence is a trustee’s enemy. Your trustee should be someone who will proactively keep beneficiaries updated, even when the news isn’t exciting or positive.
You might be getting anxious at this point in the article if you don’t have someone in your trusted circle who has all of these qualities. Fortunately, there are professional fiduciaries whose entire job is managing trusts. Even if you do know a few people who could make worthy trustees, a professional fiduciary is a clean, unemotional choice that plenty of folks make instead. Alternatively, many people initially name their spouse as a co‑trustee because it’s intuitive and simple. That’s perfectly practical, but you still need a backup plan for a successor trustee, such as a trusted adult child or a professional fiduciary, in case the surviving spouse can’t serve.
Joint revocable trusts
For many couples, a joint revocable trust feels like the most natural extension of how they already manage their lives together. Instead of juggling separate trusts, they pool assets into one shared document, simplifying everything from bank accounts to real estate ownership. This not only streamlines management while both spouses are alive, but also makes things far easier when one spouse passes away, avoiding probate, reducing administrative headaches, and keeping family finances private. It’s a particularly good fit for couples who share financial goals and want continuity. The surviving spouse can continue to manage the trust seamlessly, without having to pause life to navigate courts or paperwork.
The decision between a joint revocable trust and separate revocable trusts
There are some situations where separate trusts, or different trustee arrangements, are more suitable than combining assets into a joint revocable trust. A joint trust might expose shared assets to claims if one spouse has a suspected creditor risk or judgment. Separate trusts maintain better protection. In a joint trust, oftentimes both spouses must agree before making changes. That’s efficient if you’re aligned, but frustrating if you’re not. If you live in a state with restrictive thresholds, separate trusts can be helpful to preserve each spouse’s tax exemption.
The importance of naming a successor trustee
When married couples set up joint revocable trusts, both spouses typically serve as initial co‑trustees, which makes sense. They’re the ones in control and understand the assets best. And after the first spouse passes, the surviving spouse generally continues managing the trust alone. That smooth transition can be incredibly comforting. But what happens when neither spouse can act as trustee due to incapacity or death? That’s where your successor trustee comes in. Choose someone trustworthy, capable, and ideally familiar with your intentions. If possible, naming two co‑successor trustees (say, a trusted child and a professional) can provide balance and prevent bottlenecks. Just be sure your trust document outlines how to resolve decisions in case you need a tie breaker. It’s essential to name a successor trustee regardless of the type of trust you create.
Final thoughts on selecting trustees
Selecting a trustee is more important than many people realize. With a trustee, you choose who’ll carry your values forward, manage your legacy transparently, and keep the peace when life gets emotional. For married couples, joint revocable trusts are often a seamless starting point, but don’t skip naming clear successors who should meet the same qualifications as a good trustee. A worthy trustee should be, of course, be trustworthy, but also financially savvy, a good communicator, and have the time to manage your trust appropriately. A good trust plan paired with thoughtful trustee selection is like setting a beautiful, enduring scene for your assets and your loved ones.
Cary Jacobson is the founder and CEO of Jacobson Family Law. Cary has been practicing law for over a decade, having successfully represented clients in all facets of family law proceedings. Jacobson Family Law focuses on assisting clients in creating out-of-court solutions to their separation, divorce, custody, and other family law matters without the drama and stress associated with litigation. Additionally, Jacobson Family Law assists clients with protecting their assets through the negotiation of pre/post-nuptial agreements and estate planning.
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