CHOOSING TRUSTEES

This section explains what trusts are, why many Californians use them, and how they fit into an overall estate plan. It also clarifies the difference between revocable and irrevocable trusts, who controls them, and how they can save time, money, and stress for families.

Important Information for Readers

The information on this page applies to California residents only. Estate planning laws differ from state to state.
These questions and answers provide general educational guidance, not legal advice for any particular estate.
Probate rules and tax laws can change, so always confirm current thresholds and laws.
For personalized help, contact Estate Planning Attorney David Salvin at davidsalvinesq@gmail.com for a free consultation.

Q1. What is a trustee and what do they actually do?

A trustee is the person (or company) legally responsible for carrying out the instructions in your trust. They safeguard assets, pay bills and taxes, and make distributions to your beneficiaries exactly as you direct.

Example: If your trust says each child receives funds for college, the trustee ensures tuition is paid and that funds are used properly.

Definition: A trustee acts as a fiduciary, meaning they must always act in the best interests of the beneficiaries, not themselves.

Q2. Who can serve as a trustee in California?

Almost any adult who is legally competent can serve as a trustee You may also name a professional trustee, such as a private fiduciary, attorney, or bank trust department.

Watch out: Some financial institutions require minimum asset levels before they will serve. Always confirm before naming a corporate trustee.

Q3. Do I have to choose a family member as my trustee?

No. You may choose anyone you trust. It could be a family member a friend, or a professional you are acquainted with and trust.

Tip: Select someone organized, calm under pressure, and comfortable handling money. A non-family trustee may reduce conflict if relatives do not get along.

Q4. What qualities should I look for when selecting a trustee?

Integrity: They must put beneficiaries first.
Organization: They will handle accounting, taxes, and reports.
Communication: They must keep beneficiaries informed.
Availability: They should be able to respond quickly and stay involved for years.

Example: Let's say you live in Anaheim but you want a friend who is financially skilled and lives in San Francisco to be your trustee. They can still effectively serve as your trustee as long as they can communicate clearly and use local professionals to administer your estate.

Q5. Can I name more than one trustee?

Yes. Many people appoint co-trustees (for example, two siblings) but it is not recommended. When you have co-trustees, they must both agree on every action taken to administer the estate. Disagreements can cause problems and even lead to probate litigation.

Watch out: Co-trustees must agree on all major decisions, which can slow the process. If you expect disagreement, it’s often easier to name one trustee and have several successor trustees as backup.

Q6. What is a successor trustee, and when do they take over?

A successor trustee steps in when the original trustee dies, resigns, or becomes incapacitated.

Tip: It is recommended that you name at least two successor trustees in order of priority. If one person is unavailable, the next can step in immediately without needing court approval. This prevents unnecessary delay or judicial appointment.

Example: Mary appointed her brother as her first trustee. Around the time she died, her brother was diagnosed with Alzheimer's. Since her brother was legally incapacitated Mary's adult son Max, who she had assigned as the second successor trustee, took over the duties.

Q7. What are a trustee’s legal duties and responsibilities?

Under California law, trustees must:

Follow the exact terms of the trust.
Keep beneficiaries informed.
Avoid conflicts of interest
Keep detailed accounting records.
Manage assets prudently—as a reasonable investor would.

Why it matters: A trustee who fails these duties can be personally liable for financial losses.

Q8. Can a trustee be removed or replaced?

Yes. Most trusts include a clause allowing beneficiaries, co-trustees, or a court to remove a trustee who is unwilling, unable, or unfit to serve. However, this can be a messy, expensive and time consuming process so make sure you have confidence in the person (s) you appoint as trustees.

Example: If a trustee refuses to provide information or misuses funds, the beneficiaries can petition the court for removal under Probate Code § 15642 to have them removed.

Q9. Should I choose a professional or corporate trustee instead of a relative?

A professional trustee offers experience, neutrality, and detailed reporting. They are ideal when:

The estate is large or complex.
Family tension is expected.
Investments require active management.

Cons: They charge annual fees, usually based on a small percentage of trust assets. For smaller trusts, a reliable friend or family member may be more practical.

Q10. Can an attorney serve as a trustee?

Yes. Attorneys often serve as trustees. They can be a good choose to serve as a trustee when neutrality, record-keeping, and legal precision are needed. An attorney-trustee can interpret complex documents and coordinate with accountants and financial institutions.

Watch out: If your attorney drafts your trust and serves as trustee, California law requires written disclosure of potential conflicts and fee arrangements. Always discuss compensation and successor planning in advance.

Q11. How do trustees get paid for their work?

Trustees are entitled to reasonable compensation for their time and effort. Family trustees sometimes waive payment, but professionals charge fees approved by the beneficiaries or stated in the trust.

Q12. What’s the difference between an executor and a trustee?

An executor handles a will and probate after death. A trustee manages a trust both during your life (if you become incapacitated) and after death. You can have two different people who serve as trustee vs an Executor.

Q14. How do I prevent family conflict over trustee decisions?

Choose a neutral person.
Put clear written instructions in your trust.
Require periodic accounting reports to beneficiaries.
Allow mediation before any court filings.

Example: One parent appointed an accountant family friend as trustee to avoid sibling rivalry and keep emotions out of money decisions.

Q15. What documents or instructions should I give my trustee?

Provide copies of:

The trust document itself.
Your will, power of attorney, and health-care directive.
An asset list and contact info for your attorney, CPA, and financial advisor.

Tip: A well-organized binder or secure digital folder saves time and prevents confusion for your trustee.

Service Areas

We proudly help families in Orange, Los Angeles, Riverside, San Bernardino, Ventura, and San Diego Counties, as well as clients throughout the State of California. For guidance tailored to your situation, contact David Salvin, Esq. at davidsalvinesq@gmail.com for a free consultation.

Disclaimer

The information on this page is specific to California. Estate-planning laws vary by state. These questions and answers provide general information only and do not constitute legal advice. Laws and fiduciary thresholds can change over time. Always confirm current rules. If you live in California and want guidance for your situation, contact David Salvin at davidsalvinesq@gmail.com for a free consultation.