If you utilize a trust-based estate plan, you will need a separate individual or institution to manage the trust either now or in the future, depending on how your trust is set up. Trustee’s serve a vital role to the operation of your trust. It can be a difficult job and it can last for quite a while, depending on how the trust property is to be distributed. The trustee will have to make investments, pay bills, keep accounts, and prepare tax returns.
The trustee has a fiduciary duty to both the settlor (the person creating the trust) and the beneficiary(ies). The trust will set out the powers and obligations of the trustee. The trustee will hold title to the trust property (in trust) for the benefit of the beneficiary(ies). The trustee can initially be the settlor but, eventually, depending on how the trust is set up, a successor trustee will need to step in.
The law isn’t very strict about who can legally be a trustee (a competent 18 year old who is capable of managing their own affairs), but you will ideally want someone who does more than meet the minimum legal requirements of a trustee. While the trustee does not have to have any financial or legal background, they need to be able to manage finances and make sound financial decisions that will be in the best interest of the beneficiary(ies). You’ll also need to be able to trust the trustee. That person will ultimately be tasked with managing your assets and if they’re not trustworthy, they may misappropriate trust assets.
You need to make sure that your chosen trustee is in it for the long haul. If you intend your trust to span more than one generation, you need to line up alternate/successor trustees who will be ready when the original trustee passes the torch. One option for longterm planning is to give the trustee the power to appoint a successor or to utilize an institutional trustee (like a bank) after they’re no longer willing or able to continue as trustee.
The decision to appoint a trustee is a significant one. Make sure you have a serious conversation with potential candidates before making any decisions.
Author Bio
Paul Yokabitus
Founder & Estate Planning Lawyer
Paul Yokabitus is the founder of Cary Estate Planning, where he helps North Carolina families protect what matters most through wills, trusts, probate, and special needs planning. Known for his “planning, not paperwork” approach, Paul turns complex legal concepts into clear, practical strategies so clients feel informed and confident at every step. He has been recognized as a Business North Carolina Legal Elite attorney and a Super Lawyers Rising Star, and was named to the Triangle Business Journal’s 40 Under 40. A graduate of Campbell University School of Law, Paul lives in the Triangle with his wife, Alix, and their two sons.
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Paul and his team at Cary Estate Planning are fully committed to creating a personalized experience to develop thorough and comprehensive estate plans. They value their clients and go above and beyond to make sure that no details are missed. I would highly recommend Paul to anyone looking to create an estate plan.
I was referred to Paul by my Real Estate Attorney and I could not say enough about how exceptional the client service has been from everyone I spoke to. The communication is prompt and I feel like they really took the time to answer all my questions and set things up exactly as I wanted, but also recommended things to make it easier on my family down the line.
After attending one of Paul’s estate planning seminars, my husband and I knew we wanted Paul to assist us with our estate planning. His honest, professional approach to this necessary part of life put us at ease with the process. We will continue to recommend Paul and Cary Estate Planning.
We had a great experience working with Paul Yokabitus and the team at Cary Estate Planning to set up our Will and Estate Plan. The process was clear and easy, and in the age of COVID, our signing session was very well done, easy, and safe.
The Cary Estate Planning team will make sure that you have the information you need to be confident in your estate planning decisions. I learned so much from videos, a one-on-one in-person consultation, the website, emails, and a newsletter mailed the old fashioned way. The fee is very reasonable given the importance of estate planning. No matter the size or number of your assets, don’t procrastinate like I did!
Paul is a masterful attorney. He’s very good at taking your intentions and defining that into a durable Trust and Will. Best of all he is as simple and plain-spoken as you like. Or as fast as intellectual as you may be. It’s all about your your speed and your desired outcomes. Would strongly recommend this firm.
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