Who Should You Name as Trustee of Your California Living Trust?

A living trust can help your family avoid probate, keep your affairs private and make things easier after you pass away. But a trust is only as good as the person who manages it. When you set up a living trust in California, one of the most important choices you will make is who to name as your successor trustee.

Many people pick the oldest child or a spouse without much thought. Sometimes that works well. Other times it leads to stress, delays or family conflict. Here’s what a trustee does, what to look for and the options you have.

What Does a Trustee Do?

With most living trusts, you serve as your own trustee while you are alive and able to manage your affairs. Your successor trustee steps in when you become incapacitated or pass away.

A successor trustee’s job can include:

Taking control of trust assets such as your home, bank accounts and investments
Paying bills, debts and taxes
Keeping accurate records and accounting for every dollar
Communicating with beneficiaries and sending required notices
Selling or managing property when needed
Distributing assets according to the terms of your trust

California law holds trustees to a high standard. A trustee has a fiduciary duty, which means they must act in the best interest of the beneficiaries, stay impartial and avoid conflicts of interest. For example, when a trust becomes irrevocable, California generally requires the trustee to notify beneficiaries and heirs within 60 days. Missing steps like this can expose a trustee to personal liability.

To learn more about how a living trust works, read our post on how a living trust can help avoid probate in California.

Qualities to Look for in a Trustee

The right trustee isn’t always the person closest to you. Think about these qualities:

Trustworthy and honest. Your trustee will have control over your assets.
Organized. The role involves paperwork, deadlines and recordkeeping.
Fair. Your trustee must treat all beneficiaries evenly, even family members they don’t get along with.
Available. Being a trustee takes time, sometimes months or longer.
Good with money. They don’t need to be financial experts, but they should be comfortable working with professionals and making careful decisions.
Willing. Always ask before naming someone. Not everyone wants the job.

Location matters too. A trustee who lives far from Monterey County can still serve, but managing a local home or meeting with local advisors may be harder.

Your Options for Choosing a Trustee

A Family Member or Friend

Many people name a spouse, an adult child, a sibling or a close friend. A family member knows your values and may serve for little or no fee. On the other hand, they may lack experience, feel overwhelmed during a time of grief, or face tension with other family members who are also beneficiaries.

Co-Trustees

Some parents name two or more children as co-trustees so no one feels left out. This can work when the children get along and live near each other. But under California law, co-trustees generally must act together unless the trust says otherwise. If they disagree, decisions can stall. Your trust can address this by allowing one co-trustee to act alone on certain matters or by setting a tie-breaking rule.

A Professional Fiduciary or Corporate Trustee

A professional fiduciary, bank or trust company brings experience and neutrality. In California, most professional fiduciaries who serve as trustees for non-relatives must be licensed by the state’s Professional Fiduciaries Bureau. A professional trustee can be a good choice when:

Family members don’t get along
The trust holds complex assets such as a business, farm or rental properties
A beneficiary has special needs or needs long-term support
No family member is willing or able to serve

Professional trustees charge fees, so it’s worth weighing the cost against the benefit of having an experienced, neutral manager.

A Combination

Some families name a trusted family member to serve alongside a professional. The family member brings personal knowledge, and the professional handles investments, taxes and recordkeeping.

Special Situations to Think About

Your choice of trustee may depend on your family’s circumstances:

Minor children or young adults. If your trust holds assets for children until a certain age, your trustee may manage those funds for years.
A beneficiary with special needs. A trustee who understands how to protect eligibility for public benefits is key. Learn more about special needs planning.
Blended families. Naming a stepchild or a new spouse as sole trustee can lead to conflict. A neutral trustee may help.
Family businesses and farms. Someone who understands the business may need to run it or oversee a sale.

Always Name Backup Trustees

Your first choice may pass away, become ill or decide not to serve. Naming at least one or two backup successor trustees helps your family avoid going to court to appoint someone. You should also review your choice every few years or after major life events, such as a divorce, a move or a death in the family.

Your successor trustee may also play a role if you become incapacitated. Learn how incapacity planning works with your trust.

Frequently Asked Questions

Can a beneficiary also be the trustee?
Yes. In California, it’s common for a beneficiary, such as an adult child, to serve as trustee. They must still act fairly toward all other beneficiaries and follow the terms of the trust.

Does a trustee get paid in California?
A trustee is generally entitled to reasonable compensation unless the trust says otherwise. Many family trustees choose not to take a fee, while professional trustees typically charge one.

Can I change my trustee later?
Yes. If you have a revocable living trust, you can usually change your successor trustee at any time while you have capacity by signing an amendment. An attorney can help make sure the change is done correctly.

Talk With a Monterey Estate Planning Attorney

Choosing a trustee is a personal decision, and there’s no one right answer for every family. Attorney John D. Laughton and the team at John D. Laughton, A Professional Law Corporation, help families in Monterey and throughout California create living trusts that fit their goals, including choosing the right trustee and backup trustees. We also help trustees who are stepping into the role through our trust administration and probate services.

Disclaimer: This blog is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. Please consult an attorney about your specific situation.

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