You will likely name yourself as the original trustee of your trust so that you can continue to manage your own assets and financial affairs. However, you will want to nominate successor Trustees for when you are no longer able to act due to incapacity or death. Because successor trustees have a lot of responsibility, they should be chosen carefully.

Your successor trustee(s) will be able to do anything you could with your trust assets if it does not conflict with the instructions in your trust document and does not breach their fiduciary duty.

After you die, your successor trustee takes an inventory of your assets, works with the executor nominated in your Will to pay your final expenses, and then manages and distributes your assets according to the instructions in your trust. A successor trustee generally acts without court supervision but is obligated to keep the beneficiaries reasonably informed of their interest in the trust.

It isn’t necessary for the person nominated as your successor trustee to know exactly what to do because they can work with an attorney, CPA, and other advisors if they need guidance. However, you will want to name someone who is organized, responsible, and will work well with the beneficiaries.

When choosing a successor trustee, consider the type and amount of assets in your trust and the complexity of your trust document. Characteristics to consider when selecting successor trustees may include personality, financial or business experience, and time availability. Being a successor Trustee can take a substantial amount of time and requires a certain amount of business sense. It’s generally a good idea for trustees to be paid fair and reasonable compensation for their work.

• A successor trustee should read and become familiar with the trust document to best understand the trustee’s powers and responsibilities as well as the beneficiaries’ rights to distributions. A trustee has a fiduciary duty to act in the best interests of both current and future beneficiaries of the trust and can be held personally liable for any breach of that duty. If you accept the appointment as successor trustee, you will want to:

  • Follow all directions set forth in the trust

  • Invest trust assets prudently, yet conservatively (with minimal risk)

  • Maintain accurate financial records for tax purposes and for reporting to beneficiaries

  • Never mix trust assets with your personal assets

  • Never use trust assets for personal gain

  • Treat all beneficiaries impartially

  • Provide reports and accountings to all the beneficiaries as required in the trust document or by law.