What is a trustee? Duties, roles and big mistakes to avoid

A trustee is a person or entity in charge of handling the assets in a trust and transferring those assets to the trusts’s beneficiaries. These assets might be transferred before or after the grantor (or trust creator) dies, depending on the type of trust. Being a trustee is not the same as being an owner.

Trustees are expected to keep their own financial assets separate from the assets in the trust. They also must keep detailed records of how they’re managing the trust assets, and they share those records with the grantor, the beneficiaries and potentially the state^[0]

What is the role of a trustee?

The trustee has a fiduciary duty to fulfill the grantor’s wishes regarding the distribution of their assets. This includes:

• Managing the trust assets appropriately while the grantor is alive (depending on the type of trust) and carrying out the intent of the trust when the grantor dies.

• Making decisions about the assets based on the best interests of the trust beneficiaries, including aligning investments with the overall trust objectives.

• Using and distributing trust assets as described in the trust.

• Avoiding conflicts of interest.

• Accounting for and reporting on decisions to stakeholders.

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There are different types of trusts, but the all usually have the following:

• A grantor (or donor/settlor/trustor/trust maker): This is the person who creates the trust and transfers their assets to the trust.

• Beneficiaries: These are the people, corporations or organizations that will receive the grantor’s assets.

• Trustee (and co-trustees/successors): This is the person or people authorized and trusted with executing the grantor’s wishes.

• Property: All of the property legally owned by the grantor and involved in the trust.

States have individual laws regarding what makes a trust legal and binding. Some states only require the grantor to sign the documents in the presence of witnesses; other states require notarization^[0]

Whether you’re creating a trust for yourself or are a trustee for one, make sure the document is legal by checking the laws in your state and consulting with an estate planning lawyer.

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Trustees vs. executors

The main difference between a trustee and an executor is that a trustee is responsible for carrying out the objectives and instructions contained in a trust, and an executor is responsible for carrying out the objectives and instructions contained in a will. Also, an executor's duties typically only exist for a relatively short period of time after a person has died. A trustee, on the other hand, may have a much longer engagement that exists before and after the grantor dies.

How to pick a trustee

There are two big factors to consider.

1. The trustee's qualifications. The trustee will be responsible for ensuring all of your assets are distributed as intended. Accordingly, they should be responsible, trustworthy and reliable, and you should feel confident in their ability to act in your and your beneficiaries’ best interests at all times. If you choose a bank or trust company to act as your trustee, look for one with extensive experience in managing trusts.

2. The trustee’s relationship with other members of your estate. A trustee should be impartial and make decisions according to their fiduciary responsibilities. As the grantor, you might consider naming a beneficiary as a trustee because you likely already know and trust them. But doing so might make it difficult for that person to fulfill their fiduciary responsibilities (whatever actions they take will directly affect their inheritance). If you have only one beneficiary, that same person cannot also be the trustee^[0]

   Cornell Law School. Trust instrument. Accessed Sep 16, 2025.

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Some types of trusts, such as revocable living trusts, allow a grantor to be the trustee for their own trust. Whether the grantor is their own trustee or picks someone else, it’s also important for them to name a successor and/or co-trustee in case the original trustee dies or becomes incapacitated.

Can you change the trustee?

Different trust types do come with different rules for replacing or removing trustees.

• Revocable living trusts: The grantor of a revocable trust, which can be updated or terminated, can easily change their trustee, beneficiaries and assets at any time. They can also name themselves as the trustee, along with a co-trustee or successor trustee to take over after they die.

• Irrevocable trusts: These trusts typically can’t be modified or revoked without agreement from all of the trust’s beneficiaries or by court order, but they may allow the trustee to be replaced in some cases. To find out what types of changes you can make, you'll have to read the document's trust provisions.

How to decide whether you should be a trustee

If someone has asked you to be a trustee, ask yourself a few questions:

• Can you act impartially? If you are a beneficiary of the trust, that doesn't necessarily mean you shouldn’t also be the trustee. Ask yourself whether you’re prepared to make decisions based on the overall goals of the trust — and for the good of additional beneficiaries — rather than just for yourself.

• Do you have the time? Depending on the size of the estate, becoming a trustee can take a lot of time. Consider whether you have the energy before saying yes.

• Can you find the right resources? Trustees need to keep detailed records and make smart financial decisions. Failing to do so could affect their own finances or get them sued. If you’re not up for the challenge, do you feel confident you could find someone to help?

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Who can help a trustee?

Trustees can and should get outside help when needed — and it’s wise to do so, especially when dealing with large and complicated estates. Often, trusts include language that allows trustees to use the trust’s funds to pay for counsel or other administration costs^[0]

A few professionals whom a trustee might decide to consult could include:

• An estate planning lawyer. Estate planning lawyers specialize in the estate planning process and can help the trustee with financial and personal issues related to the trust.

• A financial advisor. A financial advisor might help the trustee properly invest the assets in the trust. A financial advisor who specializes in estate planning can also point out applicable state investor rules regarding trusts and estates.

• An accountant. Trustees are expected to keep proper documentation of the financial decisions they make regarding a trust. This includes providing an annual income tax statement to beneficiaries and filing an annual income tax return for the trust. If this paperwork isn’t handled properly, the trustee could be held personally responsible for any penalties and interest on penalties accrued by the trust. Working with an accountant who is skilled in estate planning can help avoid that^[0]

  American Bar Association. Guidelines for Individual Executors & Trustees. Accessed Sep 16, 2025.

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Does a trustee get paid?

Being a trustee takes a lot of time, and trustees should expect to receive compensation. Trustee fees are usually laid out in the will or trust. In some cases, states provide a schedule for payments. Trustees can’t usually write themselves checks from the estate, though, so consult with an estate attorney or accountant to learn the proper way to accept payment^[0]

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