Choosing Your Executor or Successor Trustee (and Whether to Name More Than One)

Deciding who will carry out your wishes is one of the most personal choices in estate planning. It's also one people often make quickly, by defaulting to the oldest child or naming everyone to keep things fair. Here's what the role actually involves and what to weigh before you decide.

Executor vs. Successor Trustee

•      An executor is named in your will and handles your estate through the probate court, if probate is needed. California law uses the term "personal representative" for this role.

•      A successor trustee is named in your living trust and manages and distributes the trust's assets, generally without court involvement. A successor trustee may also step in if you become unable to manage the trust yourself.

Many people name the same person for both roles, which keeps things simple.

What the job involves

Settling an estate or trust is real work, and it can take many months, sometimes longer. The person you choose may need to locate and secure assets, keep careful records, pay bills and taxes, work with professionals, communicate with beneficiaries, and eventually distribute property. They also take on legal duties to act in the best interests of the beneficiaries, treat them impartially, and keep them reasonably informed.

Qualities to look for

•      Trustworthy and fair. This person will be handling assets that belong to other people.

•      Organized and responsive. Deadlines, paperwork, and follow-through matter.

•      Able to handle family dynamics. A calm, even-handed person can prevent a lot of conflict.

•      Willing. Ask before you name someone. Being chosen can be an honor, but it's also a commitment.

Your executor or trustee doesn't need to be a financial expert. They can hire an attorney, a CPA, or other professionals, and reasonable costs are generally paid from the estate or trust.

Practical considerations

•      Location. California allows an executor who lives out of state, but the court may require a bond, which adds cost. Trust administration is often easier to handle from a distance, though someone nearby can be helpful for tasks like managing a house.

•      Age and health. Consider whether the person is likely to be able to serve when the time comes.

•      Backups. Always name at least one alternate in case your first choice can't or won't serve.

Should you name more than one person?

Naming co-trustees or co-executors, such as two or more of your children, can feel like the fairest option. It has real advantages: the work is shared, each person provides a check on the other, and no one feels left out.

It also has drawbacks worth taking seriously. Under California law, unless the trust says otherwise, co-trustees generally must act unanimously. That can mean every decision and signature requires everyone's agreement, which may slow things down, especially if they live far apart or don't see eye to eye. Some banks and other institutions may also require every co-trustee to sign.

If you want to name more than one person, the documents can be drafted to make it work more smoothly, for example by:

•      Allowing either one to act alone for routine matters.

•      Using majority decisions when there are three or more.

•      Naming one person to serve first with the other as a backup, rather than serving together.

Fairness doesn't require naming everyone

Serving as trustee isn't a share of the inheritance. It's a job. Your children can inherit equally even if only one of them is in charge of administration. Explaining your reasoning ahead of time can go a long way toward preventing hurt feelings later.

Professional options

If no one in your life is a good fit, or if family relationships are complicated, you can name a licensed professional fiduciary or a bank or trust company. They charge fees, but they bring experience and neutrality, and they can be a good choice in the right situation.

The bottom line

The right person for this role is someone you trust, who can handle the work and the family dynamics, and who has agreed to serve. And like everything else in your plan, it's worth revisiting as your life and relationships change.

If you're weighing who to name, or wondering whether the people you chose years ago are still the right fit, I'd be glad to talk it through. You can schedule a Discovery Call here.