Volume 2, Issue 3

Understanding Trustee Responsibilities

In this issue of our Successor Trustee newsletter, we continue our discussion on what it truly means to be a trustee—especially in the context of living trusts. Many people accept the role of trustee with the belief that they are simply helping a loved one, only to realize later that the responsibilities are far more overwhelming than expected. Having clear updated documents will alleviate a part of the stress so that the focus can be on the loved one who needs assistance.

Why a Successor Trustee May Be Needed

A successor trustee steps in when the trust creator can no longer manage their own finances. This may happen due to illness, memory loss, serious accident, long-term disability, or upon the trust creator's passing. It can also be an elective choice of the Trustmaker, often elected as they age and need more assistance.

For married couples, co-trustees often manage assets together. However, if one spouse passes away or becomes unable to participate, the successor trustee is typically the other spouse, just as you would expect in most marriages.

Key Question: Who Should Be Your Trustee?

Choosing a trustee is more than a matter of honesty and proximity. It requires someone who:

- Manages their own finances well

- Has experience with significant assets (not just their own household budget)

- Can work closely with your financial advisor, CPA, and estate planning team

- Understands the legal duties attached to the role

Duties of a Trustee

A trustee has fiduciary responsibilities, meaning they are legally bound to act in the best interest of the Trustmaker or beneficiaries. Two key legal duties include:

Duty of Loyalty

- When the Trustmaker is alive but unable to manage finances, the trustee's loyalty must remain solely to them.
- When the Trustmaker has passed, the trustee owes loyalty to all beneficiaries—equally and without favoritism.

Duty of Care

Trustees must act prudently and responsibly in managing assets—paying bills, maintaining properties, investing funds, and timely preparing and filing taxes.

Who Cannot Be a Trustee?

Under Washington law, the following individuals are disqualified from serving as a trustee:

- Minors (under age 18)

- Persons who are not of sound mind

- Individuals convicted of any felony

- Those convicted of crimes involving financial misconduct or moral turpitude

Final Thoughts

Choosing the right trustee requires careful consideration—not just of legal requirements, but of financial skill, availability, and character.

Disclaimer: This newsletter is for general educational purposes only and does not constitute legal advice. For personal guidance, please consult an estate planning attorney.