Common Mistakes When Choosing Executors and Trustees

Creating estate planning documents is only part of the process. Choosing the right people to carry out your wishes might be even more important. Your executor and trustee handle significant responsibilities that affect your family for months or years.

Our friends at Stuart Green Law, PLLC discuss how poor fiduciary choices undermine even the best-drafted documents. A high net worth estate planning lawyer helps you evaluate candidates realistically and select people who can actually handle the job. We’ve watched families struggle because someone picked a fiduciary based on sentiment rather than capability, or assumed certain relatives would naturally be the right choice without considering the actual requirements.

Mistake One: Choosing Based on Love Rather Than Ability

Your oldest child isn’t automatically the best executor. Your spouse might not be the right trustee. The person you’re closest to emotionally might lack the skills this role demands.

Executors and trustees need organizational skills, financial literacy, time availability, and willingness to serve. They must handle paperwork, meet deadlines, communicate with beneficiaries, make investment decisions, and sometimes navigate family conflicts.

Consider whether your chosen person actually possesses these capabilities. Love and loyalty don’t compensate for inability to manage complex administrative tasks.

Mistake Two: Not Asking First

People assume family members will happily serve when asked. Sometimes they’re right. Often they’re not.

The person you name might have health issues, live far away, feel uncomfortable managing money, or simply not want the responsibility. Finding this out after you die creates problems.

Have honest conversations with potential fiduciaries before naming them. Make sure they understand what’s involved and are genuinely willing to serve. According to research from AARP, many people accept executor roles without understanding the time commitment and complexity.

Mistake Three: Not Naming Backups

Your first choice might predecease you, become incapacitated, or decline to serve when the time comes. Without successor fiduciaries, courts appoint someone you might never have chosen.

Name at least two backup executors and trustees. Think about the order carefully. Your second choice should be as capable as your first, not just whoever comes to mind next.

Mistake Four: Creating Conflict by Naming Co-Fiduciaries

Some people think naming multiple children as co-executors keeps things fair. This often creates gridlock and conflict instead.

Co-fiduciaries must agree on every decision. If they disagree about selling property, making distributions, or handling investments, nothing moves forward. Siblings who got along fine as beneficiaries battle constantly as co-executors.

There are situations where co-fiduciaries work well, like pairing a family member with a professional for balance. But requiring unanimous agreement among three siblings rarely produces good outcomes.

Mistake Five: Ignoring Geographic Distance

Your daughter lives across the country. She’s organized, financially savvy, and eager to help. But being executor from 2,000 miles away creates real challenges.

Executors often need to access property, meet with attorneys, visit banks, and handle physical assets. Doing this remotely is possible but significantly harder and more expensive.

Consider location when choosing fiduciaries. Distance doesn’t disqualify someone, but it should factor into your decision.

Mistake Six: Choosing Someone Too Young or Too Old

Naming your 25-year-old as executor might make sense now. But if you live another 30 years, they’ll be managing your estate at 55, possibly while dealing with their own health or family issues.

Similarly, naming your 70-year-old sibling works today but might not in 15 years when they’re 85 and potentially declining cognitively.

Think about realistic timelines. Build in successor fiduciaries who account for aging.

Mistake Seven: Not Considering Professional Fiduciaries

Family members serve without compensation, so people default to relatives. But professional trustees and executors bring knowledge and objectivity that family members often lack.

Professional fiduciaries:

• Have experience handling estates and trusts

• Remain neutral during family disputes

• Continue serving despite changes in their personal lives

• Understand tax and legal requirements

• Provide institutional stability for long-term trusts

Yes, they charge fees. But these fees often save money by avoiding mistakes and disputes that unprepared family fiduciaries create.

Mistake Eight: Ignoring Potential Conflicts of Interest

Your business partner might seem like a logical trustee. But what if trust decisions affect the business? Your child who’s also a beneficiary faces different pressures than an independent trustee would.

Conflicts of interest don’t always disqualify someone, but recognize them and address them in your planning.

Getting the Selection Right

Choosing executors and trustees requires honest assessment of capabilities, not just emotional connections. The right fiduciary protects your plan and serves your family well. If you’re struggling with fiduciary selection or want guidance on evaluating candidates for these important roles, reach out to discuss your options and make choices that truly serve your family’s needs.