Choosing a successor trustee is one of the most important parts of creating a trust. The right choice can keep your plan running smoothly, protect your assets, and reduce stress for your family. Some people prefer an adult child who understands family dynamics and personal wishes. Others feel more comfortable naming a bank or trust company that offers structure, experience, and consistent administration.
At Barbara M. Pizzolato, P.A., we have helped Florida families make these decisions for more than 35 years. In this article, we explain what a successor trustee does and compare the advantages and drawbacks of naming a child versus a corporate trustee, so you can choose the option that best fits your goals.
The Role of a Successor Trustee in Florida
A successor trustee steps in when the grantor becomes incapacitated or passes away. This person or company manages trust assets, follows the trust terms, and keeps beneficiaries informed. The job can start quickly after a medical event or later during administration.
Duties often include collecting and valuing assets, paying bills and valid debts, filing tax returns, and making distributions to beneficiaries. A trustee holds a fiduciary duty to act in the beneficiaries’ best interests, not in their own. Florida Trust Code, Chapter 736, sets the standards and penalties for breaching those duties, including potential personal liability.
Florida law expects prudent investing, accurate records, and honest communication with beneficiaries. That structure protects your wishes and keeps everyone on the same page.
Individual Trustee: Selecting a Child or Family Member
Many families pick a child, another relative, or a close friend as successor trustee. It can feel natural and often fits smaller, simpler trusts. Still, the role can be heavier than it seems at first glance.
Advantages of Naming a Child as Trustee
A child often understands your values and the small things that matter to you. That can make decision-making faster and more comfortable.
- Personal connection, with awareness of family dynamics and your intentions.
- Possible cost savings, since some family members serve for little or no fee.
- Easy access and flexible responses when questions or emergencies pop up.
Many parents appreciate the personal touch, and a child can keep the process human and calm.
Disadvantages of Naming a Child as Trustee
Family conflict can flare if one sibling controls the purse strings. Even when the trustee tries to be fair, others can worry about favoritism or slow decisions.
Some trustees struggle with the financial side or time demands. Balancing a career, their own kids, and a heavy trust file is a lot, especially in the first few months after a parent’s passing.
Emotional considerations are also important. Handling bills, taxes, and home cleanout right after a loss can take an emotional toll.
Best Practices for Naming a Child as Trustee
Pick the most capable child, not just the oldest. If your trust suits it, name co-trustees, for example, two siblings, to provide checks and a shared workload.
Spell out goals and standards in the trust. Clear directions on distributions, investment priorities, and how to handle disputes can prevent stress later.
Give your trustee permission to hire help. Your document should allow the trustee to hire financial advisors, tax professionals, and attorneys, and pay them from the trust when needed.
Once you think through the family route, it helps to compare it with a corporate option. Many families like to evaluate both before settling on a plan.
Corporate Trustee: Banks and Trust Companies
A corporate trustee, such as a bank trust department or trust company, brings professional systems and staffing. This can be helpful for larger estates, blended families, or trusts that will last many years.
Advantages of Naming a Corporate Trustee
Corporate trustees handle investing, tax reporting, and required notices every day. They have compliance frameworks and team support.
- Professional investment management and fiduciary processes, with reporting and audits.
- Continuity, since a company does not become incapacitated or pass away.
- Neutral decision-making on distributions that can lower family friction.
That outside perspective can settle disputes faster and limit awkward money conversations among siblings.
Disadvantages of Naming a Corporate Trustee
Fees are higher than a do-it-yourself approach. A common range is 0.5 percent to 1.5 percent of trust assets per year, and there can be extra charges for tax prep or real estate work.
Service can feel less personal. Staff turnover happens, and a trust officer who never met your family can miss history or context that would matter to you.
Some corporate trustees prefer marketable securities and can be reluctant to manage rental properties or closely held businesses. If your trust holds those, ask early and get clear answers in writing.
Best Practices for Naming a Corporate Trustee
Interview several candidates. Ask for a full fee schedule, including any minimums and any add-on fees for real estate, tax filing, or special assets.
Ask about their distribution philosophy and how they document decisions. Ask how fast they respond to requests and who has the authority to approve them.
A hybrid can work well. You can name a family member and a corporate trustee together, or place a family member first with a corporate backup if the job becomes too heavy.
Here is a quick side-by-side to help you compare common trade-offs for many Florida families.
Key Qualities to Look for in a Successor Trustee
Once you choose the path, focus on the person or company that actually fits the job. The right qualities make the work smoother for everyone.
- Integrity and honesty, your trustee must be dependable and fair.
- Basic financial sense, comfortable with budgets, statements, and deadlines.
- Availability and willingness, the job takes time and steady follow-through.
- Good judgment and calm under stress, especially when beneficiaries disagree.
- Communication skills can work well with family members and advisors.
Even with outside help, these traits keep the trust on track and reduce tension.
Co-Trustees: Sharing the Responsibility
You can name co-trustees, which means more than one trustee serves at the same time. This creates checks and can split the workload in a fair way.
Common pairings include two or three children, one child with a professional trustee, or a family member with a trusted friend. If you go this route, your trust should explain who can act alone, who must sign, and how to break a tie.
Think about geography, travel time, and the need for quick signatures. If co-trustees must agree on every decision, build a tie-breaker process to prevent a stalemate.
Florida-Specific Considerations
Florida law allows both residents and nonresidents to serve as individual trustees. A Florida-based trustee can be easier to reach and more familiar with local banks, courts, and real estate professionals.
Florida does not impose a state income tax on trusts administered by Florida trustees. If the trust owns Florida homestead property, the trustee needs to follow Florida homestead rules, which affect creditor protection, transfers, and how the property can be sold or rented.
Reviewing and Updating Your Trustee Selection
Trustee choices are not set in stone. Review your plan every few years, or after big changes like a marriage, a death, a move, or a diagnosis.
Update the trust when roles or relationships shift. Name multiple successor trustees in a clear order, and add a corporate backup if no individual can serve down the road.
A short review meeting can prevent confusion later and keep your plan working the way you intend.
Choose the Right Successor Trustee With Confidence
Choosing the right successor trustee can affect how smoothly your trust is managed and how your wishes are carried out. Whether you are considering a family member or a corporate trustee, the right plan can help reduce stress and prevent conflict.
Discover how you may protect your assets and provide for your loved ones by viewing our educational estate planning webinar, where attorney Barbara M. Pizzolato explains:
- The advantages and disadvantages of Wills and Living Trusts
- Maintaining your privacy and how you may protect your estate against a living probate if you become disabled (Hint: Your Power of Attorney May Not Work!)
- Planning before you need Long Term Care
- Why putting property in children’s names may be a mistake
- How you may protect your children’s inheritance from their future ex-spouses, lawsuits, and other claims
- How you may protect your estate for your kids if your surviving spouse remarries
- How Probate works and, more importantly, how you may avoid Probate altogether
- Providing for special needs (disabled) children and grandchildren, and your pets
After viewing the webinar, you can schedule a free 2-hour consultation with Ms. Pizzolato through our website to review your trust and discuss your options for choosing the right successor trustee.
