How to Choose the Right Trustee for Your Missouri Trust

How to Choose the Right Trustee for Your Missouri Trust

If you're setting up a revocable living trust — or any type of trust — one of the most critical decisions you'll make is choosing your trustee. This is the person (or institution) who will manage your trust assets, carry out your instructions, and ultimately distribute your wealth to your beneficiaries. It's a big responsibility, and the wrong choice can lead to mismanagement, family conflict, and even legal disputes.

At The Taormina Firm, we guide families throughout the St. Louis area — from Des Peres and Sunset Hills to Florissant and St. Charles — through this important decision. Here's what you should consider.

What Does a Trustee Actually Do?

A trustee has a fiduciary duty to manage trust assets in the best interests of the beneficiaries. Under Missouri law, this means the trustee must act with loyalty, prudence, and impartiality. Specific responsibilities typically include managing and investing trust assets wisely, keeping accurate records and providing accountings to beneficiaries, filing tax returns for the trust, making distributions according to the trust terms, and communicating with beneficiaries about the trust's administration.

During your lifetime, if you've created a revocable living trust, you'll typically serve as your own trustee. The big question is: who serves as your successor trustee — the person who takes over when you can no longer manage the trust yourself, either due to incapacity or death?

Option 1: A Family Member

Many Missouri families choose an adult child, sibling, or other close family member as their successor trustee. The advantages are obvious: this person knows you, understands your values, and is likely to respect your wishes.

But there are drawbacks to consider. Managing a trust requires financial competence and organizational skills that not every family member possesses. If you have multiple children, naming one as trustee can create resentment among the others — especially if that child also has discretion over distributions. And if the trustee is also a beneficiary, there's an inherent conflict of interest that can complicate things.

If you do choose a family member, make sure they understand what the role entails and that they're willing to take it on. It's also smart to name a backup in case your first choice can't serve.

Option 2: A Trusted Friend or Advisor

Some people name a trusted friend, accountant, or financial advisor as their trustee. This can work well if the person has the right skills and is willing to take on the fiduciary responsibility. However, keep in mind that serving as trustee can be time-consuming and legally demanding. It's a favor that many people are reluctant to accept — and understandably so.

Option 3: A Professional or Corporate Trustee

For larger or more complex trusts, or in situations where family dynamics make it difficult to choose an individual, a professional trustee or corporate trustee (such as a bank trust department) can be an excellent option. Professional trustees bring expertise in investment management, tax compliance, and trust administration. They're impartial, which can reduce family conflict. They don't get sick, move away, or have personal conflicts of interest.

The trade-off is cost. Professional trustees typically charge an annual fee based on a percentage of the trust's assets. For smaller trusts, this cost may not be justified. But for larger estates or situations with complex family dynamics, the peace of mind is often worth the expense.

Option 4: Co-Trustees

Some families opt for co-trustees — for example, naming a family member and a professional trustee to serve together. This combines the personal knowledge and sensitivity of a family member with the financial expertise and objectivity of a professional. It can be a great compromise, though it does require that both trustees can work together and agree on decisions.

Qualities to Look for in a Trustee

Regardless of who you choose, your trustee should have financial literacy and the ability to manage money responsibly, integrity and a strong ethical foundation, organizational skills and attention to detail, the ability to remain impartial and make difficult decisions, and availability and willingness to serve for potentially many years.

For clients in Chesterfield, Wildwood, Clayton, and throughout the region, we spend time discussing these qualities during the estate planning process to ensure the right fit.

Common Trustee Mistakes to Avoid

Choosing the wrong trustee is one of the most common estate planning mistakes we see. Here are a few pitfalls to watch for. Don't choose someone solely because they're the oldest child — competence matters more than birth order. Don't assume your trustee will "figure it out" — make sure they understand the role before you name them. Don't forget to name a successor — if your first-choice trustee can't serve, you need a backup plan. And don't ignore the potential for family conflict — if naming one child over another could cause problems, consider a neutral third party.

Let Us Help You Make the Right Choice

Choosing a trustee is a deeply personal decision, and there's no one-size-fits-all answer. At The Taormina Firm, we'll help you evaluate your options, weigh the pros and cons, and select a trustee who will carry out your wishes faithfully.

If you're creating or updating a trust in the St. Louis area, contact us today to schedule a consultation.