What Is a Successor Trustee and How to Choose One

When you make a revocable living trust to avoid probate, one of the most important decisions is choosing and naming a successor trustee. The successor trustee is the person or institution that steps in to manage your trust after you die or if you become incapacitated. Your successor trustees are crucial to the success of your trust, and before you name a successor trustee, it makes sense to take some time to learn about what successor trustees are, what they do, and how to choose the best one for your situation.

What Is a Successor Trustee?

In everyday terms, a successor trustee is next in line to manage the property in your living trust after you can no longer do so. As the creator of the trust, you usually wear two hats at first: you put the assets in, and you manage them. Then, if you become incapacitated or when you die, the successor trustee’s responsibilities begin. They step in to manage and distribute the trust assets according to your instructions. While you are alive and capable of managing the trust property, the successor trustee has no authority over it.

Technically, you can make a living trust without appointing a successor trustee, but that’s not recommended because it will likely cause significant hassles down the line. Without naming someone to take over as trustee, your trust beneficiaries or other loved ones will have to ask a court to appoint a new trustee, which could cause delays, extra expenses, and confusion. This could defeat many of the benefits of having a trust in the first place. Naming a successor trustee (and an alternate) sets up the smooth transmission and administration of your trust when you are no longer able to serve as trustee.

When Is a Successor Trustee Appointed

You officially appoint a successor trustee when you sign your living trust, but what many people want to know is when the successor trustee takes over. The successor trustee’s authority begins when the original trustee (you) can no longer manage the trust--like when you die or become unwell. The trust document might include additional requirements for this handover, such as a doctor’s letter confirming incapacity. After the successor trustee becomes the acting trustee, they are responsible for managing, protecting, and distributing the trust property in accordance with your wishes. That said, the rules differ a bit depending on whether the trust is created by a single person or a couple.

Appointing a Successor Trustee for an Individual Trust

If you made a trust as a single person, your successor trustee will take over if you are declared incapacitated (following the trust’s specified procedures) or when you die.

Many people wonder, "What happens to a revocable trust when the grantor dies?" Usually, the trust becomes irrevocable, and the successor trustee’s responsibilities begin. We discuss the specific responsibilities of successor trustees just below.

In the event of incapacity, the trust document often spells out how it is determined, frequently requiring written certification by one or two doctors. If this standard is met, the successor trustee assumes control of the trust.

Appointing a Successor Trustee for a Shared Trust

Shared living trusts, commonly set up by married couples or partners, operate differently. Both grantors usually act as cotrustees while they are alive and capable. Later, if one spouse or partner dies or becomes unwell, the other typically continues as sole trustee. The successor trustee takes over only after both original grantors have passed away or are no longer able to serve. For example, if you have a joint trust, and your spouse dies, you will continue to act as the sole trustee of your trust.

This arrangement means that as long as one original trustee remains able, there is no need for the successor trustee to step in, providing continuity and limiting disruption for the surviving grantor.

What Are the Duties of a Successor Trustee?

Serving as a successor trustee is a serious commitment, with real legal and practical responsibilities. The role comes with a duty to act in the best interests of the trust and its beneficiaries, and to meet the following core obligations:

• Following the trust's instructions. The successor trustee must carry out the trust's written terms, even if beneficiaries ask for exceptions or shortcuts.
• Acting as a fiduciary. They must always put the beneficiaries’ interests first and avoid conflicts of interest.
• Protecting and managing Trust Property. The trustee must safeguard all trust assets, from bank accounts to real estate, and manage them with reasonable care.
• Keeping good records. This includes tracking all income, expenses, and distributions and accurately recording everything.
• Communicating with beneficiaries. A successor trustee must keep beneficiaries aware of what's happening with the trust and provide accountings or other information as required by the trust.

After the initial trustee’s death, the successor trustee's job becomes even more involved. Additional tasks could include:

• Identifying and securing assets. The successor trustee must locate all trust property, secure valuables, and make sure that the trustee has accounted for all trust property.
• Paying debts and expenses. The trustee will pay any final bills or expenses related to the trust. If the trust holds assets that generate income, the successor trustee must file income tax returns.
• Managing or distributing assets. They might have to decide whether certain assets should be sold or distributed directly to beneficiaries, always in line with the trust’s instructions.
• Making distributions. Finally, the successor trustee will transfer property to beneficiaries as specified, whether in a lump sum or over time.

In practice, these responsibilities can range widely—from arranging homeowners' insurance to tracking down digital accounts, managing automatic payments, or explaining complex decisions to family members. The role requires organization, diligence, and the ability to handle both paperwork and people.

How to Choose a Successor Trustee

The person or institution you choose as successor trustee will be responsible for carrying out your wishes, managing assets, and communicating with your beneficiaries. Pick someone you trust absolutely, who has good judgment, and who can handle both practical and interpersonal challenges.

Choosing a Successor Trustee for an Individual Trust

As discussed above, the successor trustee of an individual trust will be called upon to step in if you become incapacitated or to manage and distribute trust assets after your death. Their work can involve day-to-day management of investments and bills, as well as overseeing the ultimate distribution of property to your beneficiaries.

Because the role entails significant responsibility and discretion, it’s important to choose someone who is level-headed, honest, and reliable. If your choice possesses these qualities, financial expertise isn’t always a must. A trustee can always hire professionals, such as attorneys, accountants, or financial advisers, and pay them from trust assets as needed. If they will be managing funds for a young beneficiary over many years, choose someone with the skills and commitment for long-term oversight.

If you don’t know anyone who seems like a good fit, it might be worth reconsidering whether a living trust is the right option for you. Most people select a trusted adult child, close relative, or friend. You can also consider a corporate trustee, covered below.

Choosing a Successor Trustee for a Shared Trust

For joint or shared trusts (usually set up by spouses or partners), the successor trustee’s role is similar: to distribute trust assets after both grantors have passed away or to manage those assets if both become incapacitated. Choose someone with sound judgment and whom you trust unconditionally. Most people select a close family member or friend.

Keep in mind that a successor trustee for a shared trust usually does not step in until both grantors are unable to serve as trustees. The surviving grantor often has the opportunity to update the trust and select a new successor trustee if warranted.

Every day financial expertise is less important than dependability and honesty. Successor trustees managing long-term trusts for young beneficiaries might need additional skills, but can always consult professionals and pay for their help from trust funds.

Before completing your trust document, make sure your intended trustee is willing and able to serve.

Naming Multiple Successor Trustees

While it’s common to name one successor trustee to keep things simple, you may choose to appoint two or more cotrustees--though it's often not a good idea. Sometimes parents try to ‘be fair’ by naming all of their adult children. In practice, that can stir up more resentment than it solves. (If your kids are already at odds, naming them together as co-successor trustees will likely make things worse, not better.)

Naming multiple successor trustees can be especially problematic if they will manage a young beneficiary's assets over many years. Long-term decisions about spending and investments can lead to conflict among cotrustees, so consider this carefully.

If you appoint cotrustees, specify in your trust document whether they can act independently or must agree on actions. Allowing each trustee to act alone might be efficient, but having them work together helps ensure that no trustee is acting as an outlier.

If you name multiple successor trustees and one can’t serve, the others will continue. If none are available, your named alternate will step in.

Does a Successor Trustee Get Paid?

A successor trustee of a basic living trust often doesn’t receive a fee, particularly in a simple family trust where the successor trustee is also a primary beneficiary who will receive a portion of trust property anyway. A successor trustee in this position may not feel the need to be paid separately or may not want to deal with the hassle (and financial consequences) of reporting trustee fees as income.

On the other hand, if you expect your successor trustee will need to put a lot of time or energy into administering your trust, you might want to include a payment provision in the trust document to make sure they are compensated. Many trust documents state that the trustee is entitled to “reasonable compensation” for their ongoing work. The trustee usually determines what is reasonable and may pay themselves directly from the trust assets. If your trust document doesn't include payment for the trustee, your successor trustee can still petition the court for payment, but doing so will cost the trust time and money.

If a beneficiary believes the trustee is paying themselves too much, they have the right to challenge the fees in court. Generally, though, compensation disputes are rare when the trustee acts in good faith and keeps clear records.

Naming Alternate Successor Trustees

It’s wise to name an alternate (or backup) successor trustee in case your primary choice is unable or unwilling to serve. If you have named multiple successor trustees, the alternate steps in only if none of your original choices are available.

If all the individuals you’ve named in your trust document are unable to act, the last serving trustee typically has the authority to appoint another successor trustee in writing. This ensures someone will always be able to manage and administer your trust, even if your original choices can’t serve.

Can You Name a Corporate Successor Trustee?

If there’s no one in your circle you trust with these responsibilities, or if your trust is particularly large or complex, you might consider naming a trust company or bank as successor trustee. Institutional trustees are usually expensive and often have minimum asset requirements (like trust assets must be worth at least a million dollars), but they can provide professional management and oversight to your trust if that’s what you need.

Some people with large trusts name both a person and an institution as cotrustees, combining personal supervision with professional expertise. The corporate trustee handles the paperwork while the individual monitors the situation and handles personal communications.

If you choose an institution, check its requirements and make sure you’re comfortable with its fees and procedures.

Learn More About Making a Living Trust

A good successor trustee can make the difference between a calm, orderly wrap-up and a year of family drama. By choosing someone trustworthy and well-suited to the responsibilities, you help ensure your wishes will be carried out smoothly.

You can find out more about making WillMaker’s living trust in WillMaker’s Legal Manual.