Dear Clients and Friends,
We see it often: a well-intentioned client names a family member, close friend, or even an adult child as the successor trustee of their trust, believing this will make the administration “simple” or keep peace within the family. Unfortunately, this decision can create significant complications, especially when the individual selected is unfamiliar with the legal, financial, and fiduciary obligations required of a trustee.
Over the years, we have encountered many situations where appointing an unprepared or unsuitable trustee led to avoidable problems. A few examples:
Outdated designations: Clients sometimes forget they named a parent or sibling who has since passed away or become incapacitated. When that person can’t serve, the family may be forced into court to appoint a replacement trustee, causing delay, expense, and stress at an already difficult time.
Lack of understanding of fiduciary duties: Trustees must follow strict legal standards— duty of loyalty, impartiality, prudent investment, accurate accounting, tax compliance, and maintaining meticulous records. Many laypeople do not realize they can be personally liable for mistakes.
Family conflict: When a child or sibling becomes trustee, old family dynamics can resurface. Accusations of favoritism, improper distributions, or mismanagement often arise—even when the trustee is acting in good faith. These disputes can escalate into litigation, consuming trust assets and damaging family relationships.
Delays and administrative errors: We have seen trustees who unintentionally violate terms of the trust, fail to make required notices, overlook tax deadlines, or mishandle investments, exposing themselves and the trust to risk.
Selecting a trustee is one of the most critical decisions in the estate planning process. A trustee must have the right combination of legal knowledge, financial understanding, impartial judgment, and administrative ability. Most individuals—no matter how well meaning—simply do not have the training or time to fulfill these obligations properly.
To help clients avoid these issues, Anderson, Dorn & Rader offers AD&R Trustee Services, a professional trustee platform designed to ensure your trust is administered correctly, efficiently, and with the highest level of fiduciary care.
We bring over 30 years of experience in trust and estate administration.
We provide a neutral, impartial decision-maker to reduce conflict.
We ensure compliance with fiduciary standards, tax rules, investment oversight, and reporting requirements.
We preserve family relationships by taking the burden off loved ones.
Whether you are reviewing your current plan or considering updates, we encourage you to revisit your trustee designations and ensure they reflect both your intentions and the realities of modern trust administration.
If you would like to discuss your options or learn more about AD&R Trustee Services, please contact our office. We are here to help you make the best decisions for your family and your legacy.
Warm regards,
Anderson, Dorn & Rader, Ltd.
