Choosing the Right Trustee

When creating a trust, most people focus on the assets they’re protecting or the loved ones they’re providing for, often overlooking one of the most critical decisions: who will be in charge of it all. That person is called the trustee, and they play a very important role. Appointing the wrong trustee could lead to unintended consequences, family tension, or even legal disputes. The right trustee ensures that your wishes are honored with care and integrity, even after you are gone.

What is a Trustee?

A trustee is the person or entity responsible for managing the assets held in a trust. This individual has a legal and ethical obligation to follow the instructions laid out in the trust document and to act in the best interest of the beneficiaries. Their responsibilities may include recording expenses and income, managing property or investments, distributing funds to beneficiaries, filing necessary tax documents, and maintaining detailed records of financial transactions. Above all else, a trustee must carry out the wishes of the trust’s creator with loyalty, transparency, and care.

Who Can Serve as Trustee?

In many cases, the individual who created the trust, known as the grantor, will serve as the initial trustee until they are no longer able to do so due to incapacity or death. At that point, a successor trustee would take over.

When deciding who should serve as trustee or successor trustee, you have several options. Many people choose a trusted family member or close friend. Others may prefer to appoint a professional trustee, such as a bank, trust company, or lawyer. In some cases, people choose to appoint co-trustees, where two or more individuals serve together.

Why This Choice Matters

As the grantor, you have the authority to choose who will fill this vital role, and that decision shouldn’t be taken lightly. You want someone responsible, organized, impartial, and who will faithfully carry out your wishes. Appointing the wrong trustee can have serious consequences. Poor management, lack of communication, or biased decision-making can result in damaged family relationships, unnecessary taxes, legal disputes, or even court intervention. While both Maine and New Hampshire offer legal solutions to remove a failing trustee, the better option is to make a thoughtful, informed decision now that gives you peace of mind and protects your legacy.