Who Should Be the Trustee of Your Living Trust?
For a revocable living trust you will normally serve as your own trustee, so the real decision is who becomes successor trustee when you die or cannot act. Pick someone organized, honest and willing to do detailed work for years, not simply the oldest child or the closest relative. You can name a family member, a trusted friend, a professional or bank trust department, or a combination, and you should name at least one backup.
What a successor trustee actually does
The job is administrative and long. The successor trustee collects and secures assets, notifies beneficiaries, keeps trust money separate from personal money, pays debts and taxes, keeps records, files tax returns, and distributes assets under the trust terms. Texas law holds a trustee to fiduciary standards: loyalty to the beneficiaries, prudent management and impartial treatment of beneficiaries with competing interests. A trustee who breaches those duties can be personally liable.
Individual or corporate trustee
| Option | Strengths | Watch for |
|---|---|---|
| Family member or friend | Knows the family, usually lower cost | Inexperience, conflicts among siblings, burnout, no backup if they become unable |
| Bank or trust company | Continuity, professional recordkeeping, no family politics | Charges for its services, may prefer large or simple estates, less personal |
| Professional individual (attorney, CPA) | Expertise, neutrality | Cost, and you must plan for their own succession |
Questions to ask before you choose
- Is this person good with paperwork and deadlines, and calm under pressure?
- Will beneficiaries accept their decisions, or will conflict follow?
- Do they live close enough, or can they manage remotely?
- Is the person a beneficiary too? That is allowed, but it creates a built-in conflict when the trustee decides discretionary distributions.
- Are they willing? Ask them first. Naming someone who declines forces the next person in line to step up.
Co-trustees and backups
Naming two co-trustees can add oversight, but it also adds friction, since decisions may need both signatures or must be unanimous. An alternative is to name one trustee and give a second person, sometimes called a trust protector or advisor, the power to review the trustee's work or replace the trustee. Always name at least two backups in order, because the first choice may die, move, or decline.
Trustee when children are young
If beneficiaries are minors, the trustee may be managing money for many years. Some people split the roles: one person raises the children (the guardian named in the will) and a different person manages the money, so each has a check on the other. Your attorney can draft the trust so the trustee has clear guidance on spending for health, education and support.
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Book Free ConsultationFrequently asked questions
Can my spouse be my trustee?
Yes. Married couples commonly name each other as co-trustees or as each other's successor trustee, then name the children or a professional as the next successor.
Can one of my children be trustee over the others?
Yes, but it can create friction. A common fix is to require regular accountings to all beneficiaries and give a neutral person the power to replace the trustee.
Can a trustee be removed?
If the trust document gives someone the power to remove and replace the trustee, that person can do it. Otherwise a beneficiary can ask a Texas court to remove a trustee for cause, such as a breach of duty.
Does a trustee get paid?
Texas law allows a trustee to receive reasonable compensation unless the trust document says otherwise. Family trustees often waive it; professional trustees do not.