The Advanced Guide To Selecting Co-Trustees

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In this post we address the designation of trustees and co-trustees and the different ways to arrange their relationship.
For purposes of this post, there are two types of trustees and co-trustees.
First, there is, what I call, the temporary trustee. This is when a parent or parents set up a revocable living trust to avoid probate, and they designate a successor trustee or co-trustees to handle the distribution of assets after the parent or parents die. This role is often temporary, lasting days or weeks. The trustee of co-trustee of an RLT typically sells the family home and deals with banks and brokerage institutions, making sure that distributions are made to trust principal beneficiaries in accordance with terms of the trust instrument.
The other kind of trustee or co-trustee, for purposes of this post, is the role that will last for years or decades. Perhaps parents don't want to leave a lump sum of money to one of their adult children. So they provide that after the parents die, that child's share will continue to be held in trust for, perhaps, the lifetime of the child. Here, the trustee or co-trustee designation is critical because the trust will last for many years, and the trustee or co-trustees are likely to have the authorization to exercise their discretion regarding distributions to the child/beneficiary.
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This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.
Paul Rabalais
Estate Planning Attorney
www.RabalaisEstatePlanning.com
Phone: [phone]

[@Sandilayman7]

Haven’t watched this video yet but take it from someone who knows You need sleep! I love your videos look at them often but your too tired today. Your family needs you to slow down and take care if you. Your health is most important! I’m a post crazy to do addict myself, my 65 year young body looks 85 and now feels like it. Go LSU, GO Paul, but slow down. I’d love to hear you everyday but not worth the time you give to God, your family and yourself. Affectionately, a devoted listener.

[@25kmgb]

Exactly the information my wife and I needed before finalizing the information we are providing the trust attorney we're working with.

[@revtmyers1]

Have really been enjoying binge watching your videos. Very well articulated and beneficial.

[@MissyQ12345]

I think co-trustees work better because they can help each other. Choose the two who get along best.

[@rodneyrubright2618]

Thanks for the useful information

[@torycook1215]

Excellent legal advice. Excellent communication. Thank you for your video channel. I live in California and your channel is still extremely informative! I am in the process of composing a trust outline (in declarative form) to take to my estate planning attorney. Your channel is comprehensive, covering all the topics I need to address. Your information is clear, concise, precise, and of true value.🇺🇲👍🗽

[@americasestateplanninglawy1946]

Awesome, thank you!

[@stephen5147]

Working on restating a trust, so very relevant discussion. Thanks.

[@americasestateplanninglawy1946]

Nice 👍

[@patrickprados9508]

Love your videos trying to put together a trust with 2 kids name as trustees question if one of the kids has some kind of wrong doing and is liable and are sued can they go after the trust are half of the trust thanks again for all the knowledge you are sharing with all of us.

[@AI_Talks_About_The_Bible]

Is it wise to pick a large law firm as trustee for continuity in a family trust?

[@pauldavis7949]

Great videos, I have learned so much! Thank you for your hard work and teaching!!

[@americasestateplanninglawy1946]

Glad you’re learning PD! 😃

[@omarb5542]

Info on a Dynasty trust with rental property, investments such as, retirement accounts, stocks, etc. I would want nothing to be sold ever, with monthly or annual payments from the trust to the trustee, beneficiaries after a account firm and law firm with 50% back into the trust.

[@maryjager1757]

I've been binge watching your videos this weekend :) You may have covered this topic in another video (which I haven't watched yet) What if there is farm land in your Living Will. Typically when land is sold the capital gains taxes eat up a large portion of the worth. Assuming both husband and wife have passed away, and the Living Will turns into an Irrevokable Trust, can the land stay in the trust, and the beneficiaries take a draw each year (as the land will be cash-rented out), leaving enough money there to pay taxes, etc? If you did cover the topic in another video, please just reference a link. Thanks.

[@Geminis3505]

Thanks so much for this amazing video!

[@Narsuitus]

When I went to the lawyer who prepared my will, I told him I wanted to pick someone outside my family to be the executor. He advised that I select someone inside my family. I took his advice. I could have selected any one of my three children; however, I selected my middle child because he was with me while I talked to the lawyer.

[@stqadri]

what if the Acting Trustee resigns and nothing is mentioned in he trust document about replacement. Does it make sense to have an Alternate Trustee designated in the Revocable Living Trust itself

[@americasestateplanninglawy1946]

Yes

[@vinnitca1990]

Нi Paul ! Love your videos , thanks very mach ...... .

[@americasestateplanninglawy1946]

Awesome 😎

[@vincentlee4799]

Seriously, you talk about heirs or trustee’s as your child’s from the parents perspective. But these are probably all adults, so how does either a family trustee or a 3rd party trustee have the ability to control the distribution of money to possibly an adult, child that is say 60 years old? Guess I don’t see the how this works.

[@garygoldstein327]

The three of us were titled in my Dads trust. My youngest sister was made the trustee along with Mom's attourneys handling the leagal proceedings such as aquiring signatures approving the accounting and add'l expenses incured for my Mom's care. In the mean time I will need a Co-Trustee in Illinois. And heard great reviews about a woman named Karen. We had a video conference thru my Mom's attourney to examine paperwork and sign as Co-Trustee. As soon as I met her assistant I filled out paperwork to turn in to Karen. But the paperwork was vague and later she disappeared and was delaying first contact. Legitimate excuses. Later my sisters try to reach her and no communication at all? As time goes by ddisbursement is ready but my Co-Trustee does not respond? Eventually she responds. She explains once the disbursment of stocks is liquidated the money will be invested at the banks discretion in other stocks that are not doing as well as the ones I want to keep and explaining that this is not what I agreed to? I have not discussed with Karen any agreement to liquify my stocks and refuse to surrender my disbursment of stocks to be liquidated. But my sisters have joint trusteeship and they have the power to release this distribution that she claims is not in our power to prevent since I fore feited my disbursement to them. Now she claims I need to hire an attourney? Unfortunately Ii dont know much about Illinois Co-Trustee Laws and cannot find out how to communicate to Karen that the trust is titled to me and not her. I want to set up an account with schwaub but she insists she is handling everything against my better judgement. And not including me in any of the decissions and I encouraged my siblings not to give us the disbursement but they keep it. And I will pay any penalties under advise ment. Maybe you can do a video on this topic (inspite of the difference of Illinois law.)