You may have typed in any of the following challenges or questions to get to this page:
What are the duties of a successor trustee?
My mom named me trustee. What does that actually mean?
What is a trustee, and how is it different from an executor?
Can a trustee hire a financial advisor?
Do I get paid to be a trustee?
What happens if I make a mistake as trustee?
Written by Amy Parvaneh, founder and CEO of Select Advisors Institute
Excerpt and Summary:
If a parent or sibling named you successor trustee, you may have just found out you're responsible for a family trust...and you have no idea what the job involves. This article explains successor trustee duties in plain English, what to do first, and the professionals who can help you carry the load. Select Advisors Institute can also help you organize the people around the trust and compare advisors if the trust needs one. Read more about this topic.
What are the duties of a successor trustee?
I was just named successor trustee. What does that even mean?
Wait, I'm in charge of what now?
Maybe your dad mentioned it years ago over dinner. Maybe you found out in the attorney's conference room last Tuesday. Either way, here you are.
You might be the oldest child, and everyone just assumed it would be you.
You might be the "organized one" in the family, which is a compliment...and also how you ended up with this job.
You might be stepping in while your parent is still alive but can no longer manage things.
You might be the trustee for a sibling's trust, and you're worried about how the rest of the family will react.
Let's start simple. What is a trustee? A trustee is the person legally in charge of the assets held in a trust. The successor trustee is the person who takes over when the original trustee (often your parent) passes away or can't serve anymore.
The trust document is your rulebook. Your job is to follow it.
You don't have to know everything on day one. You just have to know who to call.
What are a successor trustee's duties, in plain English?
Every trust is different, and your estate attorney is the one who can tell you exactly what yours requires. But most successor trustee duties fall into a few buckets:
Find and protect the assets. Bank accounts, investment accounts, the house, maybe a rental property or a life insurance policy. You need to know what's there and keep it safe.
Keep the lights on. Pay the bills, the property taxes, the insurance and the utilities on any property the trust owns.
Keep records of everything. Every dollar in, every dollar out. (A simple spreadsheet and a folder of receipts will become your best friends.)
Handle taxes. Trusts can have their own tax returns, and your parent may still have a final personal return to file. This is CPA territory.
Communicate with the beneficiaries. Keep them informed about what's happening and when.
Distribute the assets exactly as the trust says, when the trust says. Not how you think Mom would have wanted it. How the document says.
Underneath all of that is something called a fiduciary duty. In plain English, it means you have to act in the best interest of the beneficiaries, not yourself, and you have to be careful and fair with money that isn't really yours.
That sounds scary. It's also very doable with the right people around you.
What should I do first as successor trustee?
Breathe. Then grab a notebook.
Get the documents. The trust, any amendments, the will, and several copies of the death certificate if your parent has passed.
Meet the estate attorney. Ask them to walk you through the trust page by page. Ask the "silly" questions. There's no such thing.
Make a list of every asset and every bill. Look at mail, old tax returns, and bank statements for clues.
Talk to the existing professionals. Your parent's financial advisor, CPA and insurance agent can help you see the full picture.
Don't move money or sell anything yet until you understand what the trust allows and what the tax picture looks like.
And please, don't mix trust money with your own. Not even "just for a week." Keep it separate, always.
[read our article around generational wealth transfer]
Can a trustee hire a financial advisor? (And should I?)
My dad's advisor already called me. Do I just keep him?
In many cases, yes, a trustee can hire professionals to help manage the trust, including a financial advisor, a CPA and an attorney. Your attorney can confirm what your specific trust allows.
And honestly? For most families, you should get help. Managing trust investments carefully is part of your job, and "I left it all in a checking account for three years" may not hold up well if a beneficiary ever asks questions.
When I was at Goldman Sachs Private Wealth Management and later PIMCO, I watched how the industry treats a family trust that suddenly changes hands. Advisors see a new trustee as a relationship to win. Some will do a wonderful job. Others will mostly be focused on keeping the assets right where they are.
So whether you keep your parent's advisor or look around, ask:
"Have you worked with successor trustees before? What did that look like?"
"How will you help me with record keeping and reporting to beneficiaries?"
"Are you a fiduciary at all times?"
"How exactly are you paid, and who pays you, the trust or me?"
Bottom line: you're allowed to hire experts. Being trustee doesn't mean being the expert on everything.
What if my siblings don't trust me?
Here's the part no one warns you about. The money is often the easy part. The family is the hard part.
Your brother may want to sell the house tomorrow. Your sister may want to keep it forever. And everyone may be watching you a little more closely than you'd like.
A few things that help keep the peace:
Over communicate. Short email updates every month or two go a long way.
Share the paperwork. Transparency is your friend (and your protection).
Let the professionals be the "bad guy." "The attorney says we have to wait until the taxes are filed" lands better than "because I said so."
Some families also bring in a neutral coordinator so the trustee isn't carrying everything alone.
[read: Do You Need a Family Office, or Just Someone Who Makes Sure Everything Gets Done?]
Do I get paid as trustee? What if I make a mistake?
Many trusts allow the trustee to receive reasonable compensation. Plenty of family trustees choose not to take it. Either way, ask your attorney what your trust says.
As for mistakes, this is exactly why you build a team. A good attorney, a good CPA, and an advisor who understands trust administration can keep small problems from becoming big ones.
You said yes out of love. You don't have to do it out of fear.
The list of questions goes on and on!
And that's exactly where Select Advisors can come in and help!
Don't go through the process of finding or changing a financial advisor alone. We can help!
How can Select Advisors Institute help me as a new successor trustee?
At Select Advisors Institute, we do not manage investments or provide financial advice. Instead, we offer strategic support to help you navigate the complexities of wealth management, ensuring that your financial relationships are structured to serve your best interests. By providing these services, we help you maintain control over your financial decisions, ensuring that your wealth management strategy aligns with your unique needs and objectives.
We'd love to speak with you about your goals, answer some of your top questions about the financial industry, and/or refer you to some of my favorite financial advisors in this space that may match your exact needs.
If you've just been named successor trustee, you face unique challenges. You may be grieving a parent or caring for a sibling while suddenly being responsible for accounts, taxes, records and family expectations. Doing this well means understanding your role, building the right team around the trust, and keeping everyone informed along the way.
We provide comprehensive support by assisting in the organization and management of your financial advisor evaluation process. Our services include helping you define your financial needs and priorities before engaging professionals, drafting or reviewing RFPs for advisory and planning services, and building comparison frameworks across firms, services, and compensation models. We also track communications during advisor meetings to identify gaps or follow-ups, ensuring that you have all the necessary information to make informed decisions.
Hi, I'm Amy Parvaneh,
Since 2014, my firm has guided 100s of financial firms and thousands of financial advisors. I have been in the financial services industry since 2001, with a successful career at Goldman Sachs Private Wealth Management and then PIMCO.
Beyond advisor selection, we assist in gathering background materials and documentation for review, help interpret fee structures and service models, and coordinate introductions to firms that meet your specific criteria. Our team reviews public disclosures, monitors advisor changes or staff turnover that may impact your relationship, and facilitates communication with your legal, tax, and family office teams. We aim to translate industry jargon into terms that align with your values, providing debrief support after advisor interviews and designing internal decision-making frameworks across stakeholders. By serving as a neutral, long-term liaison, we help monitor alignment, organize your existing team for better visibility and clarity, and support onboarding logistics for newly selected firms. Our goal is to ensure that the advisor you choose fits your actual life, not just their presentation.
https://www.linkedin.com/in/amyparvaneh/
If you have any of the below questions, it's time to call us!
I was just named successor trustee. What do I do first?
What is a trustee, and how is it different from an executor?
What are my legal duties as a successor trustee?
Can I hire a financial advisor to manage the trust's investments?
Should I keep my parent's financial advisor for the trust?
How do I find an advisor who has experience with trust administration?
Who pays the advisor, the trust or me?
How do I keep good records as a trustee?
What reports do I owe the beneficiaries?
Does the trust need its own tax return?
Can I get paid for being a trustee?
What happens if I make a mistake as trustee?
How do I handle siblings who don't trust my decisions?
Should we sell the family house or keep it in the trust?
How long does it usually take to settle a trust?
What do I do if I find accounts I didn't know about?
How do I coordinate the attorney, CPA and financial advisor?
Can I step down as trustee if it becomes too much?
How do I support a trust fund beneficiary who isn't good with money?
Can someone sit with me in meetings so I don't feel lost?
Select Advisors Institute is not a registered investment adviser and does not provide investment, legal, or tax advice. We are a boutique management consulting firm deeply embedded in the wealth management, asset management, family office, and UHNW sectors, advising financial institutions on strategic growth, talent development, investor communication, and brand positioning, while guiding ultra-high-net-worth families in advisor selection, coordination, and the day-to-day management of complex wealth structures.
Managing the wealth of ultra high net worth investors and family offices is a highly specialized and nuanced endeavor that requires the expertise of seasoned financial advisors. The best financial advisors for UHNW clients possess specialized knowledge, a fiduciary mindset, a customized approach, a robust network, a proven track record, expertise in philanthropic planning, and a sterling reputation. By carefully considering these factors, UHNW individuals and family offices can select financial advisors who are best suited to meet their unique and intricate financial management needs.