How Many Trustees Can a Trust Have?

Why the Type of Trust Matters

The type of trust you are establishing is a factor in determining the amount of trustees you want to select. If you are establishing a revocable trust, you will likely be the initial sole trustee, unless you decide to name your spouse or someone else as co-trustee. It should be clear in the document who will act should you lose capacity or upon your death; this can be one person or multiple.

The choice of trustee is more immediate with an irrevocable Medicaid asset protection trust because the creator of the trust must relinquish control of the trust assets from the moment of creation to ensure maximum protection. While you can maintain the right to change the trustee, you must initially decide if you will have one or more trustees serving.

How the Assets in the Trust Impact Your Choice

The assets that you choose to fund the trust with may dictate the best trustee for the job. If the trust is going to hold only real property, you may want to choose a trustee with experience with this type of asset. Similarly, if the trust will hold investment assets, you will want to think about the qualifications of the trustee to manage such accounts. Exactly what goes into the trust can help you determine “who?” and “how many?”

Family Dynamics Are Crucial

Family dynamics may be the most important indicator of who should serve. Co-trustees with the ability to act separately can be a great idea if you think the trustees will work well together. But if you think there may be friction, one trustee at a time may be your best bet. In New York, the default law is that “majority rules” for decisions by trustees when there are at least three trustees, and unanimous decision is required if only two trustees. However, the terms of the trust will control.

You can avoid conflict by including language in your trust that dictates how to resolve specific disagreements. It is best to attempt to avoid conflict altogether because when co-trustees disagree, the beneficiaries of the trust suffer.

How to Avoid Trust Disputes

Careful planning and difficult conversations during life can often prevent difficult disputes after life. No one wants to leave behind a task for people they care about that has the potential to cause disputes. Understanding family dynamics and revisiting them every few years after the creation of the trust can encourage problem solving and teamwork amongst trustees and beneficiaries. Transparency is usually the best route, but you should work with your attorney to overcome potential weaknesses in your estate plan or help mediate once you are gone.

By Britt Burner, Esq.

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.