How to Decide Who Should Manage Your Trust

Setting up a trust is one of the most effective ways to make sure your assets are handled the way you want—both during your lifetime and after. Trusts provide privacy, flexibility, and peace of mind, making them a key part of many estate plans. But one of the most important decisions you’ll need to make isn’t just what goes into your trust—it’s who will be in charge of managing it.

The trustee is the person (or organization) responsible for carrying out the terms of your trust. They’ll manage assets, handle paperwork, and make sure everything is done according to your instructions. The right trustee can make a big difference in how smoothly everything goes—and how well your trust supports the people you care about. So how do you decide between naming an individual, like a family member or friend, or choosing a corporate trustee, such as a bank or trust company? Let’s take a look at both.

Individual Trustees: What to Know

Why people choose them:

• Personal Connection: A family member or friend may have a better sense of your values and your family’s needs.
• Lower Cost: They may charge little or nothing for serving, which helps preserve more of the trust’s assets.
• Flexibility: They’re often more willing to handle unique family situations or tailor their approach to what feels right.

Potential challenges:

• Emotional Burden: Managing a trust can be overwhelming, especially while grieving a loved one.
• Lack of Experience: Unless they have a legal or financial background, they might struggle with the more complex responsibilities.
• Life Happens: An individual trustee could become unavailable due to illness, death, or personal challenges.

Corporate Trustees: What to Consider

Why they might be a good fit:

• Professional Management: Corporate trustees are experienced and knowledgeable in trust administration, taxes, and investments.
• Stability: Institutions don’t retire or get sick, so you get consistency over time.
• Neutral Perspective: They’re not emotionally involved, which can help reduce family tensions or conflicts.

Things to keep in mind:

• Cost: Their services come with higher fees, which may not make sense for smaller estates.
• Impersonal Approach: They may not fully grasp your family’s dynamics or wishes.
• Structured Process: Their procedures may feel more rigid or less tailored than a family member’s approach.

Still Not Sure? Consider a Team Approach

Some people choose to appoint co-trustees—an individual and a corporate trustee working together. This can offer the best of both worlds: personal understanding from someone close to the family, and professional support from a corporate trustee to handle complex tasks.

Every Trust Is Different—Let’s Talk About Yours

Choosing the right trustee is a personal decision that deserves careful thought. If you’re unsure about which option is best for your situation, our team at Wills, Trusts, Probate & Elder Law Firm, PLLC is here to help. Call us at 941-914-9145 or fill out our online form, and we’ll reach out to schedule a time that works for you.