Setting up a trust is one of the smartest ways to protect assets and plan for the future. But a trust is only as strong as the person managing it. That’s where the trustee comes in.
Choosing the right trustee is a significant decision, particularly in Louisiana, where unique legal traditions such as community property and forced heirship can complicate matters. At Losavio & DeJean, LLC, we’ve seen firsthand how a well-chosen trustee can make or break a trust. Here’s what you need to know.
What Does a Trustee Do?
A trustee is the person (or institution) responsible for managing the trust assets according to your instructions. Their duties typically include:
- Following the terms of the trust
- Managing property or investments
- Distributing assets to beneficiaries
- Filing taxes and keeping financial records
- Acting in the best interest of the beneficiaries
The role is a fiduciary one, meaning it carries serious legal obligations. A trustee must be loyal, honest, and financially responsible.
Not Everyone Is Cut Out for the Job
When choosing a trustee, look for someone with integrity, good judgment, and financial know-how. They don’t need to be a CPA, but basic money management is key. They should also be available and responsive.
Mistakes often happen when trustees are stretched too thin. And they should communicate well, especially since they’ll be dealing with beneficiaries, sometimes during emotionally charged times. Some people choose a close family member. Others go with an attorney, an accountant, or a corporate trustee. The right choice depends on your goals and how complex your trust is.
Louisiana’s Legal System Adds Another Layer
Louisiana’s legal system is rooted in civil law, not common law like the rest of the U.S. That means trust law here can differ in several ways. For example:
- Forced heirship rules may restrict how much of your estate you can leave outside of certain heirs (typically children under 24 or with disabilities).
- Usufructs (a type of temporary property interest) are often used in Louisiana estate plans and may be part of a trust arrangement.
- Community property can affect how marital assets are handled in a trust.
Because of these factors, your trustee should either be familiar with Louisiana law or have access to professional guidance. In Louisiana, a good trustee isn’t just managing money. They’re also navigating legal complexity.
Should You Appoint a Co-Trustee?
In some cases, naming co-trustees can work well. For example, a family member might serve alongside a financial institution. The family member knows the needs and dynamics of the beneficiaries. The institution brings professional experience and objectivity.
But keep in mind, co-trustees must act together. That can slow things down or create tension if they disagree. If you go this route, choose people who can cooperate and communicate effectively.
Can You Name a Successor Trustee?
It’s also smart to name a successor trustee. This is the person who takes over if your original trustee dies, becomes incapacitated, or chooses not to serve.
Life happens. Having a backup plan helps your trust run smoothly no matter what. You can list more than one successor in order of preference. Some people also appoint a trust protector, someone with the power to remove or replace a trustee if things go off track.
Need Help Choosing the Right Trustee?
Choosing a trustee isn’t just about trust. It’s about capability. Every family is different, and every trust needs someone who can manage both the money and the legal obligations.
At Losavio & DeJean, LLC, we help Louisiana families create estate plans that stand the test of time. That includes building trusts that are clear, enforceable, and tailored to your goals. We can also guide you in choosing the right trustee and ensuring your wishes are carried out.
Let’s make sure your legacy is in good hands. Contact Losavio & DeJean, LLC today to get started.