Estate Planning Attorney in Laguna Hills, CA | Confidential Consultations
Estate Planning Attorney in Laguna Hills, CA | Confidential Consultations
Home » Should Your Lawyer Control Your Money After You Pass Away
When creating an estate plan, most people focus on who will inherit their assets. An equally important question is often overlooked. Who should be in charge of managing and distributing your money after you pass away
This role is known as the executor in a probate case or the successor trustee in a living trust. Some clients naturally ask whether the lawyer who drafted the trust should also take on that role. While it is legally allowed, it is rarely the best choice.
As a California estate planning attorney, my answer to this question is almost always no. Below is a clear explanation of why, what a trustee actually does, and who is usually a better option to manage your estate.
When you create a revocable living trust, there are three key roles involved:
While you are alive, you typically serve as all three. Once you pass away, a successor trustee steps in. This person has significant responsibility and legal authority.
A successor trustee must:
In many cases, this role lasts months or even years, especially if beneficiaries are young, have special needs, or if assets are held long term. Living trusts in Orange County
Yes. California law allows the lawyer who drafted your trust to serve as the successor trustee. However, legal permission does not always equal good practice.
Just because something is allowed does not mean it is wise.
The biggest concern is conflict of interest. If the lawyer who drafted the trust also administers it, they are responsible for following instructions they themselves wrote.
If a mistake exists in the document, or if a beneficiary challenges how the trust is written or interpreted, the lawyer is effectively judging their own work. Even if nothing is done improperly, the appearance of conflict alone can create distrust and disputes.
Estate administration is emotional. Families are grieving, stressed, and often sensitive to perceived unfairness. When beneficiaries see the lawyer who drafted the trust controlling distributions and charging fees, it can quickly create resentment and suspicion.
This can lead to disagreements, formal objections, or even litigation.
Trustees are entitled to reasonable compensation. Lawyers acting as trustees often bill hourly, sometimes at rates of four hundred dollars or more per hour or more. Those fees are paid directly from the trust assets, reducing what beneficiaries ultimately receive.
A family member or professional fiduciary often costs far less.
A lawyer’s best role is providing legal advice and guidance, not managing day to day trust administration. I believe my value is highest when I am advising trustees, not acting as one.
This separation avoids conflicts and ensures beneficiaries have independent legal counsel available if questions arise.
I recently met with a client whose prior estate planning lawyer named himself as the successor trustee. The backup trustee was another lawyer at the same firm.
After reviewing the documents, both the client and their children felt uncomfortable. Even though nothing improper had happened, the arrangement felt wrong. The lawyer who wrote the trust would also control the money, interpret the terms, and pay himself from the trust.
The client ultimately decided to rewrite the trust and remove the lawyer entirely. A responsible adult child was named as trustee instead.
This situation is not uncommon, and it highlights why careful trustee selection matters.
In many families, one adult child is organized, trustworthy, and financially responsible. It is very common and appropriate for that child to serve as trustee, even if they are also a beneficiary. The law allows this, and it often works well when family relationships are healthy.
Some people prefer to name a sibling, close friend, or extended family member who understands the family dynamics and can act neutrally.
Licensed professional fiduciaries serve as independent trustees. They do not draft the trust and have no conflict of interest. Their job is simply to follow the trust instructions. Estate planning FAQs
Banks and financial institutions with trust departments can serve as trustees, especially for large or complex estates. This option can be useful but often involves higher fees and minimum asset requirements.
The best trustee is someone who is:
No trustee is expected to know everything. Trustees can and should work with lawyers, accountants, and financial advisors as needed.
A well drafted trust gives clear instructions so the trustee knows exactly what to do. This reduces confusion and limits the potential for disputes. What does a complete estate plan include
Can my estate planning lawyer be my trustee?
Yes, but it is usually not recommended due to conflicts and cost concerns.
Who is the best person to be a trustee?
A responsible adult child, trusted family member, or professional fiduciary.
Do trustees get paid?
Yes. Trustees are entitled to reasonable compensation.
Can a beneficiary also be the trustee?
Yes. This is common and legally allowed in California.
What happens if the trustee makes mistakes?
Trustees can be held personally liable, which is why guidance from an attorney is important.
Can I change my trustee later?
Yes. A revocable living trust can be updated at any time while you are alive.
Estate planning is not just about who receives your assets. It is also about who manages the process and how smoothly it happens. While it may seem convenient to name your lawyer as trustee, it often creates unnecessary risks, costs, and conflicts.
The right trustee combined with good legal guidance protects your family, preserves relationships, and ensures your wishes are carried out properly.
If you live in California and want help choosing the right trustee or reviewing your current plan, now is the right time to get clarity.
Schedule your free 30-minute Strategy Session today or call (949) 377-2996 with Michael Pevney, your trusted Orange County estate planning attorney.
SECURE YOUR LEGACY
With over 18 years of legal experience in Orange County, Michael Pevney focuses on estate planning to help families protect assets, avoid probate, and secure their legacy with confidence.
