How to Choose a Trustee or Executor for Your California Estate Plan

Choosing who will manage your estate after you pass away is one of the most critical decisions you will make in your estate planning process.

Whether you call this person a trustee for your living trust or an executor for your will, this individual will have legal control over everything you own. They will be responsible for distributing your assets, paying your debts, and carrying out your final wishes exactly as you specified.

This is not a decision to make lightly.

What Is a Trustee?

A trustee is the person who has control over all of the money and all of the property inside of a trust.

When you create a revocable living trust, you and possibly your spouse if you are married serve as the initial trustees of that trust. You create the trust and you also have control over anything in that trust during your lifetime.

This setup gives you complete flexibility to manage, buy, sell, or transfer assets as you see fit while you are alive and competent.

The Role of a Successor Trustee

When you or both you and your spouse pass away, it is critical to think about who is going to carry on in that role. Who will be the successor trustee?

The successor trustee is the person who has legal control over everything inside of that trust after you are gone.

This does not mean they get to do whatever they want with that money. They must abide by and follow the terms of the trust that you set out when you created the trust.

Understanding what a complete estate plan includes helps clarify why this role is so important.

The Number One Requirement: Trust

The big overarching and absolute most important thing when selecting a successor trustee is trust.

You have to trust them. You need to pick somebody who is trustworthy.

This might be:

• A family member
• A sibling
• A parent, depending on how long the trust will last
• A very close and very trusted friend

Sometimes the choice is straightforward. If you have responsible adult children and everything is just going to be divided up among one or more children, you can pick a child or more than one child to be the trustee. They will be responsible for maybe selling a home and dividing up the property among the kids.

When the Trust Lasts for Many Years

But sometimes estate plans are more complex. You might be dividing things up and giving things out over time, meaning the trust is going to last for many years after you pass away.

In that situation, especially if you have minor children, you will need to pick somebody who is okay with being the trustee for a long period of time.

If some of your children are under age and they might not be getting their last distribution until they are 35 or 40 years old, that trust is going to be in effect for quite a while.

This is common when parents want to protect family assets from being squandered or when children are too young to handle large inheritances responsibly.

Talk to Your Trustee Before Naming Them

It is critically important to talk to the person before you name them as trustee.

This is not something people typically want as a surprise.

“Welcome, you are the trustee” is not a conversation anyone wants to have at a funeral.

You want to get their consent and talk to them about whether they are willing to take on this responsibility before you put their name in your trust documents.

This conversation also gives you a chance to explain your wishes, discuss any unique family circumstances, and make sure they understand the scope of their duties.

They Don’t Need to Be Financial Experts

Your trustee needs to be trustworthy, but that does not mean they have to be a math whiz or know the ins and outs of the law.

They can always seek professional help from:

• A lawyer
• An accountant
• An investment advisor

As long as they are sticking to the terms of the trust and distributing that money in the exact way the trust says, they can get expert guidance for the technical aspects.

Many trustees work with experienced estate planning attorneys throughout the administration process to ensure everything is handled correctly.

According to the California Probate Code Section 16002, trustees have a duty to administer the trust according to its terms and California law, but they can hire professionals to assist them.

Always Name Alternate Trustees

If the trustee is unable or unwilling to serve, or heaven forbid they have passed away, it is always good to have alternates.

You should name at least one alternate successor trustee so the process can move to that second level if the first choice is unable or unwilling to serve.

Many California families name two or even three alternates to ensure someone will always be available when needed. This prevents the need for court involvement to appoint a trustee.

Common Trustee Choices for Different Family Situations

For Simple Estates with Adult Children: One or more responsible adult children can serve as co-trustees. This works well when the estate will be distributed quickly and all beneficiaries get along.

For Estates with Minor Children: Choose someone who will be in your children’s lives for decades. This might be a sibling, close friend, or other family member who is younger and will be available as your children grow up.

For Blended Families: Estate planning for blended families often requires choosing a neutral trustee who can fairly balance the interests of children from different relationships.

For Complex or High-Value Estates: Consider a professional trustee or corporate fiduciary, especially if the trust will last many years and requires sophisticated investment management.

The Professional Trustee Option

There are also professional trustees available. These are people who often work for a bank or trust company.

Every big bank has a trust department, and many smaller and regional banks have trust departments as well. These professionals obviously have to be hired and paid for their services.

When to Consider a Professional Trustee:

• There is a large amount of money in the trust
• The trust might exist for a very long time
• There is not anybody you have that high of a level of trust in
• Family dynamics are complicated and a neutral party would be better
• The estate includes complex assets like businesses or real estate portfolios

According to the California Department of Financial Protection and Innovation, professional trustees must be licensed and are subject to regulatory oversight, providing an additional layer of protection.

If you are considering a professional trustee, it is always good to interview more than one person and talk to them about whether you think it is a good idea for them to serve in this role.

Executor vs Trustee: Understanding the Difference

While this article focuses primarily on trustees, it is important to understand how executors differ.

An executor is named in a will and manages the probate process through the court system. An executor’s duties are supervised by the probate court, and they must file regular reports and get court approval for many actions.

A trustee manages assets held in a trust and generally operates without court supervision. This provides more privacy, flexibility, and efficiency.

Learn more about the difference between trusts and wills and why many California families choose trusts over wills.

What Happens If You Don’t Choose a Trustee?

If you fail to name a successor trustee, or if all of your named trustees are unable or unwilling to serve, the trust does not simply disappear.

Instead, beneficiaries or interested parties would need to petition the court to appoint a trustee. This involves:

• Court proceedings and legal fees
• Delays in asset distribution
• Potential family conflict over who should serve
• Loss of the privacy benefits that trusts normally provide

This is one of the reasons Californians still end up in probate even with a trust in place.

Co-Trustees: Is Two Better Than One?

Some families choose to name multiple co-trustees who serve together.

Advantages of Co-Trustees:

• Shared workload and responsibility
• Built-in checks and balances
• Multiple perspectives on difficult decisions
• Can ease family tensions by including multiple children

Disadvantages of Co-Trustees:

• Potential for disagreement and deadlock
• Slower decision-making process
• More complex logistics and communication
• Both must typically sign off on all actions

If you choose co-trustees, your trust should specify whether they must act unanimously or if majority rule applies.

Trustee Compensation in California

Trustees are entitled to reasonable compensation for their services under California Probate Code Section 15681.

Compensation Guidelines:

• Family members often serve without payment
• Professional trustees typically charge around 1% of trust assets annually
• Hourly rates for attorney-trustees can range from $300 to $600 or more
• Compensation must be reasonable based on the work involved

Your trust can specify compensation terms or allow the trustee to take statutory fees.

When to Update Your Trustee Choice

Your trustee selection should be reviewed and potentially updated when:

• Your chosen trustee passes away or becomes incapacitated
• Your relationship with the trustee changes significantly
• Your trustee moves far away or their circumstances change
• Your estate grows or becomes more complex
• Your children become adults and could serve
• Family dynamics shift due to divorce, remarriage, or conflict

Keeping your estate plan current includes regularly reviewing your trustee choices.

Special Considerations for California Residents

California has specific laws that affect trustee selection and duties.

California-Specific Issues:

• High property values mean trustees often manage million-dollar estates
• Proposition 13 property tax rules affect real estate transfers
• California income taxes apply to trust income
• Community property laws impact married couples’ trusts

These complexities are why many families choose trustees who are familiar with California law or work with Orange County estate planning attorneys who understand local requirements.

Avoiding Common Trustee Selection Mistakes

Mistake 1: Choosing Based on Birth Order or Fairness Do not automatically choose your oldest child or try to rotate the role among children to be fair. Choose based on ability and trustworthiness.

Mistake 2: Naming Someone Who Lives Far Away While possible, having a trustee in another state can create logistical challenges, especially for managing California real estate.

Mistake 3: Choosing Someone Too Old If you name your 75-year-old sibling and you might live another 20 years, they may not be able to serve when needed.

Mistake 4: Not Discussing It First Springing this responsibility on someone after your death can create enormous stress and resentment.

Mistake 5: Ignoring Family Dynamics Naming one child over others can create jealousy and conflict. Consider whether a neutral third party might be better.

Mistake 6: Forgetting About Joint Ownership Problems Some people try to avoid the trustee issue by adding children as joint owners, but this creates its own set of problems.

Questions to Ask Potential Trustees

Before naming someone as your trustee, ask them:

1. Are you willing to take on this responsibility?
2. Do you understand what being a trustee involves?
3. Do you have the time to handle estate administration?
4. Are you comfortable working with attorneys and financial professionals?
5. Can you be fair to all beneficiaries, even if conflicts arise?
6. Are you organized enough to keep required records?
7. Will you be able to handle this role even years from now?
8. Do you have any concerns about serving?

Their answers will help you determine if they are the right choice.

The Trustee’s Role vs Your Attorney’s Role

Many people wonder whether their lawyer should control their money after they pass.

Your estate planning attorney creates your trust documents and can advise the trustee, but the attorney typically should not serve as trustee unless there are specific reasons for this arrangement.

The attorney provides legal guidance while the trustee makes actual decisions and manages assets.

Creating a Smooth Transition

To help your successor trustee succeed:

Document Everything:

• Keep a list of all assets and their locations
• Document account numbers and access information
• Store trust documents safely but accessibly, and make sure copies are available
• Create a letter of instruction with important information

Communicate Clearly:

• Discuss your wishes while you are alive
• Explain any unusual provisions in your trust
• Introduce your trustee to your attorney and financial advisors
• Update them if anything significant changes

Provide Resources:

• Give them contact information for your estate planning team
• Share this article and other educational resources
• Consider having them meet with your attorney now
• Make sure they know where to find everything they will need

What If You Cannot Find Anyone to Serve?

If you truly do not have anyone you trust to serve as trustee, you have options:

1. Professional Fiduciary: Licensed individuals who serve as trustees for a fee
2. Trust Company: Banks and financial institutions with trust departments
3. Corporate Trustee: Specialized companies that provide trustee services

While these options involve fees, they provide professional management and can be the best choice for some families.

The cost of a professional trustee is much less than the cost and stress of California probate, which can easily exceed $46,000 for a million-dollar estate.

Key Takeaways

• The successor trustee has legal control over all trust assets after you pass away
• Trustworthiness is the single most important quality in a trustee
• Always discuss the role with potential trustees before naming them
• Trustees do not need financial expertise but must be willing to seek professional help
• Name at least one alternate successor trustee in case your first choice cannot serve
• Professional trustees are available for complex or high-value estates
• Trustees must follow the exact terms of your trust, not their own preferences
• Regular review of your trustee choice is essential as circumstances change
• California law provides specific guidelines for trustee duties and compensation
• Proper planning and communication make the trustee’s job much easier

Frequently Asked Questions

What is the difference between a trustee and an executor?

A trustee manages assets in a trust without court supervision, while an executor manages a will through probate court. Trustees have more flexibility and privacy than executors.

Can I name more than one person as trustee?

Yes, you can name co-trustees, but your trust should specify whether they must act unanimously or by majority rule to avoid disagreements and deadlock.

Should I name my oldest child as trustee?

Not necessarily. Choose based on ability, trustworthiness, and willingness to serve, not birth order. The most responsible and capable child is often the best choice.

How much does a professional trustee cost?

Professional trustees typically charge 1 to 2 percent of trust assets annually, or hourly rates from $300 to $600 for attorney-trustees.

Can my trustee also be a beneficiary?

Yes, this is common when naming adult children as trustees. However, the trustee must still act fairly toward all beneficiaries under California law.

What if my chosen trustee cannot serve when I die?

This is why naming alternate successor trustees is critical. If your first choice cannot serve, the role passes to your alternates in order.

Does my trustee need to live in California?

No, but having a local trustee is more convenient, especially for managing California real estate and meeting with beneficiaries and professionals.

Can I change my trustee choice later?

Yes, with a revocable living trust you can change your trustee designation anytime while you are mentally competent by amending your trust.

Final Thoughts

Choosing the right trustee is one of the most important decisions you will make in your estate plan. This person will carry out your final wishes and manage everything you have worked your entire life to build.

The trustee you select will have control over everything inside the trust once you pass away, but they must distribute all assets in the exact way you specified when you created the trust.

Do not leave this critical decision to chance. Work with an experienced estate planning attorney who can help you evaluate your options and choose the trustee who will best serve your family’s needs.

Schedule your free 30-minute Strategy Session today or call (949) 377-2996 with Michael Pevney, your trusted Orange County estate planning attorney.