Estate Trustees: Understanding a Trustee's Role Makes it Easier to Appoint One

The Estate Trustee’s role may be straightforward, or quite complex if there are several beneficiaries, trusts and sizable investments to be managed. Estate Trustees may have to go through all the personal papers of the deceased to discover what assets and debts exist and to identify and locate all possible beneficiaries. They are obligated to protect the assets of the estate for the beneficiaries, and they have the power to sell some of the assets to pay debts.

If an estate presents as a fairly simple one – arranging the funeral, paying outstanding debts and income tax, gathering the assets and distributing them – then a spouse, child (of legal age) or other family member can be appointed Estate Trustee. Often, if a spouse is the sole beneficiary, he or she is usually appointed.

If an estate is more complex however, an individual might want to appoint a number of Estate Trustees, each responsible for a specific part of the estate. For example, if a trust has been set up to manage a minor’s inheritance, it is wise to appoint someone who knows the child.

A business partner might be the logical choice to ensure the continuing profit of a business. Of course, Estate Trustees are expected to make business decisions in the best interests of the estate and not for their own benefit. A lawyer, accountant or someone with sound business experience might be appointed Estate Trustee specifically to deal with an investment portfolio.

A trust company is an ideal Estate Trustee for an estate large enough to absorb the costs of managing it, and where determining what is best for the family is not an issue.

Appoint an Estate Trustee(s) who is capable of doing the job and who wants to take on the responsibility. No one can be forced to be an Estate Trustee and the appointed individual can resign. So it’s a good idea to name an alternative in case an Estate Trustee predeceases the person appointing them.

It’s often a good idea to make a provision in your Will allowing an Estate Trustee to obtain expert advice, paid for by the estate. Estate Trustees can charge for their services but family members or friends often choose not to ask for a fee.