One of the most common estate planning tools is a trust. Though once used almost exclusively by wealthy families to pass down the family fortune without incurring a transfer tax, trusts are now found in the average person’s estate plan. In fact, trusts have evolved to the point where there is now a specialized trust to help achieve almost any estate planning goal. No matter what type of trust you create, you will need to appoint a Trustee to administer the trust. One of the most common, and costly, mistakes people make when creating a trust is to appoint the wrong person as Trustee. As the Vero Beach attorneys at Kulas Crawford & Smith explain, one option is to appoint an attorney to be the Trustee of your trust.
Trustee Duties and Responsibilities
A trust is a relationship whereby property is held by one party for the benefit of another. A trust is created by a Grantor, also called a Maker or a Settlor, who transfers property to a Trustee. The Trustee holds that property for the trust beneficiaries. In general, the Trustee’s job is to oversee the administration of the trust and manage the trust assets. A Trustee plays several diverse roles during the administration of a trust, including:
- Managing and protecting trust assets
- Abiding by the trust terms unless they are impossible, illegal, or unconscionable
- Investing trust funds using the “Prudent Investor Standard”
- Monitoring trust investments
- Communicating with trust beneficiaries
- Resolving conflicts among beneficiaries
- Making discretionary decisions
- Distributing trust funds to beneficiaries
- Approving or denying distributions if given discretionary authority
- Keeping detailed trust records
- Preparing and paying trust taxes
Why You Might Want to Consider Appointing an Attorney as Your Trustee
The job of Trustee requires knowledge of the applicable laws and significant financial skills. Trusts often fail because the Grantor appoints a close friend, spouse, or family member to the position of Trustee without stopping to consider if that person has the necessary experience and skill set for successfully fulfilling the role. As the Grantor, you have the option to appoint a professional Trustee, such as a trust attorney. Some of the benefits of having an attorney serve as your Trustee include:
- Experience and Knowledge: The Trustee of a trust should ideally be familiar with all the applicable state and federal laws that govern trust administration. In addition, a Trustee needs to have the financial wherewithal to invest the trust assets in a way that they will grow over the lifetime of the trust. A professional Trustee, such as an attorney, will usually have more experience and knowledge about trust administration than a spouse/family member/friend.
- Objectivity: A Trustee may have the authority to make discretionary disbursements if certain conditions are met. An attorney will be objective when deciding if a request for a disbursement should be granted because he/she does not know the beneficiary on a personal level.
- Liability: The Trustee of a trust can, under certain circumstances, be held liable for the loss of assets or other negative outcomes during the administration of the trust. Not only would you not want someone close to you to be in such a position, but a professional Trustee is less likely to end up in that position.
- Conflicts: The Trustee of a trust is often called upon to resolve conflicts among beneficiaries and is always required to try to prevent them from occurring in the first place. When the Trustee knows the beneficiaries on a personal level it can be must more difficult to avoid, or help resolve, conflicts. Worst still, the Trustee can easily run into a conflict of interest that could threaten the success of the trust. When your Trustee is an attorney, conflicts of interest are unlikely.
Do You Have Questions about Appointing an Attorney as Your Trustee?
For more information, please join us for an upcoming FREE seminar. If you have additional questions or concerns appointing an attorney to be the Trustee of your trust, contact the experienced Vero Beach trust attorneys at Kulas Crawford & Smith by calling (772) 398-0720 to schedule an appointment.
- Choosing the Right Type of Will for Your Florida Estate Plan - September 2, 2026
- What You Need to Know about Trust Administration in Florida - August 26, 2026
- What High-Net-Worth Families Should Know About Asset Protection in Florida - August 12, 2026