My Brother Asked Me to Serve as His Trustee. What Did I Just Sign Up For?

One of the most common concerns I hear from clients goes something like this:

"I'd like my sister to be my Trustee, but I'm worried it's going to be too much work."

Or, after the estate plan is signed, I receive a call from the brother, sister, or close friend who has just agreed to serve.

"I said yes...but what exactly am I supposed to do?"

It's a fair question. The word "Trustee" sounds intimidating. It conjures images of legal documents, tax returns, investment decisions, real estate transactions, and endless paperwork. Many people assume they need to become experts in all of those areas before they can accept the job.

The reality is much simpler.

You do not have to be a lawyer, CPA, tax advisor, financial planner, investment manager, or real estate professional to be an excellent Trustee.

Your real job is to make thoughtful decisions, act in the best interests of the beneficiaries, and bring in the right experts when needed.

I often compare a Trustee to the general contractor building a custom home. The general contractor probably isn't the electrician, the plumber, the roofer, or the painter. Instead, the contractor coordinates the right professionals, keeps the project moving, and makes sure everything comes together properly. A Trustee's role is very similar. The attorney answers legal questions. The CPA prepares tax returns. The financial advisor helps manage investments. The realtor assists with selling real estate. The Trustee oversees the process and makes informed decisions after considering the advice received.

One of the Trustee's first responsibilities is simply to determine what the trust owns. That means locating bank and investment accounts, identifying retirement accounts and life insurance policies, gathering deeds and titles, securing valuable personal property, and making sure nothing is overlooked. In many cases, this is less about doing complicated work and more about being organized.

The Trustee is also responsible for protecting trust assets during the administration. If there is a home, someone needs to make sure the insurance stays in force, the utilities continue to be paid if appropriate, and the property is maintained until a decision is made about its future. Investment accounts need to remain under prudent management, and valuable personal property should be safeguarded until it can be distributed or sold.

Paying legitimate expenses is another important responsibility. Funeral expenses, outstanding medical bills, legal fees, CPA fees, insurance premiums, property taxes, and similar obligations are generally paid from trust assets. The Trustee doesn't have to know every rule governing these payments but does need to make sure they are addressed appropriately.

Many people are surprised to learn that the Trustee generally controls trust property during the administration. For example, if the trust owns a home, the beneficiaries do not automatically become its owners upon the death of the trustmaker. Instead, the Trustee decides whether selling the property is appropriate or whether it should be distributed in kind. The Trustee signs the listing agreement, accepts the purchase offer, and signs the closing documents on behalf of the trust.

The same principle applies to personal property. Whether it is a vehicle, furniture, artwork, jewelry, or the family piano, those items remain trust property until the Trustee distributes or sells them. In most families, a good Trustee will naturally communicate with the beneficiaries and try to honor sentimental wishes whenever possible. Ultimately, however, the Trustee (not the beneficiaries) is responsible for making decisions that are fair, practical, and consistent with the terms of the trust.

Taxes are another area that causes unnecessary anxiety. Trustees often assume they are expected to prepare fiduciary income tax returns or understand complicated tax laws. Fortunately, that is almost never the case. Most Trustees hire a CPA to prepare any required returns. Likewise, legal questions are directed to the attorney, and investment decisions often remain with the family's existing financial advisor. A Trustee's responsibility is to recognize when professional advice is needed and make sure it is obtained.

Good communication is another hallmark of an effective Trustee. Beneficiaries are usually much more patient when they understand what has been accomplished, what remains to be done, and why certain decisions are being made. A few thoughtful updates can prevent misunderstandings and preserve family relationships during an emotional time.

Trustees should also keep reasonably good records. That doesn't mean maintaining sophisticated accounting systems. It simply means documenting money received, bills paid, distributions made, and important decisions. Organized records make everyone's job easier, including the Trustee's.

People are often surprised to learn that Trustees are generally entitled to reasonable compensation for the work they perform and reimbursement for expenses incurred while administering the trust. Many family members choose not to accept compensation, particularly when serving for parents or siblings, but the option is usually available.

The biggest misconception about serving as a Trustee is the belief that you need to know everything before accepting the appointment. In reality, the opposite is true. The best Trustees are rarely experts in every field. They are organized, conscientious, honest, and willing to ask questions. They understand that their role is not to have all the answers but to make sound decisions after consulting the right professionals.

In my practice, I tell every successor Trustee the same thing:

Your loved one didn't choose you because you know tax law or trust accounting. They chose you because they trust your judgment.

That's the quality that matters most.