Being asked to serve as trustee for a loved one’s trust is often seen as an honor – and in many ways, it is. It means someone trusts you deeply to carry out their wishes and care for the people they love after they’re gone. But while the request may come from a place of love, accepting the role is a serious decision, and one that shouldn’t be taken lightly.
The truth is, serving as a trustee can be incredibly complex, time-consuming, and even stressful. It comes with real legal duties – and real liability if things aren’t handled correctly. So before you say yes, it’s essential to understand exactly what’s involved and whether you’re truly prepared to take it on.
What Does a Trustee Actually Do?
A trustee is legally responsible for managing and distributing the trust’s assets in accordance with the terms of the trust and in the best interest of the beneficiaries. This can include:
- Locating and securing trust assets
- Interpreting and following the trust instructions
- Managing finances and investments
- Filing tax returns on behalf of the trust
- Communicating regularly and transparently with beneficiaries
- Keeping detailed records
- Eventually distributing assets and closing the trust
This role isn’t just administrative – it’s fiduciary. That means you have a legal obligation to act prudently and loyally, or risk being held personally liable.
The Good News: You Don’t Have to Do It Alone
Thankfully, trustees are allowed (and encouraged!) to get professional help. You’re not expected to be an expert in law, taxes, or investing. Most trustees work closely with attorneys, CPAs, and financial advisors to fulfill their duties properly. And yes, trustees can be paid for their work.
Still, many family members decline compensation out of love or duty – but that’s a personal choice, and one we can help you think through based on the scope of the trust and your relationship with the people involved.
When It Might Be Better to Say “No”
Even with support, sometimes taking on the role of trustee just isn’t a good fit – and that’s okay. Here are a few signs that it might be wise to decline:
- You’re overwhelmed with your own family, work, or health issues and don’t have the capacity to take on more responsibility.
- You have a strained relationship with the trust beneficiaries, which could create tension or conflict.
- The trust terms are vague or leave too much to interpretation, especially when it comes to managing assets for young or financially immature beneficiaries.
- The trust is disorganized or poorly funded, which could mean you’ll have to spend time and energy just figuring out what assets exist and where they are.
- There’s potential for conflict or lawsuits – which means you could be caught in the middle of legal disputes that require significant time and resources to navigate.
It’s okay to say no. In fact, sometimes the most responsible thing you can do for yourself and the people involved is to decline and let someone else step into the role.
Let Us Help You Make the Right Decision
At Cheever Law, we guide trustees every step of the way – or help you decide whether accepting the role makes sense in the first place. If you’re feeling unsure, we can review the trust with you, explain what would be expected of you, and give you an honest assessment of the time, energy, and risk involved.
And if you do move forward, you won’t be alone. We’ll walk with you through the entire trust administration process – from the moment you step into the role until the day the trust is closed.
Serving as trustee is a big job, but with the right guidance, it can also be a meaningful way to honor someone’s legacy and support their loved ones.
If you’ve been asked to serve as a trustee – or you’re thinking of naming someone else in that role – schedule a Life & Legacy Planning Session with us. We’ll help you navigate every step of the journey with clarity and confidence.
We don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.