ABA Family Legal Guide

Estate Planning

Trusts and Living Trusts

Setting Up and Maintaining a Trust

Whom should I pick as trustee?

A trustee's duties can continue for generations and, in many cases, require expertise in collecting estate assets, investing money, paying bills, filing periodic accountings, and managing money for beneficiaries.

The biggest decision to make in designating a trustee is whether to use a family member, a professional trustee, or both. Many trust creators choose a family member as a trustee. A family member usually won't charge a fee and, generally, has a personal stake in the trust's success. If the family member is competent to handle the financial matters involved, has the time and interest to do so, and if you're not afraid of family conflicts, naming a family member as trustee may be a good move, particularly for a small or medium-sized estate.

A professional trustee such as a bank will charge a management fee. In some cases, it can be substantial. Professional trustees also have been criticized for being impersonal in their dealings with beneficiaries who require, or at least desire, more personal attention. On the other hand, a professional trustee is immortal, unlikely to take sides in family conflicts, and commands the kind of investment and money-management expertise that a lay trustee may not possess. Particularly if you have a large estate, give serious consideration to a professional trustee.