Do you remember the question, “How many angels can dance on the head of a pin?” Philosophers still debate, and the answer remains elusive.
Here’s a question closer to common experience: How many people should be co-trustees of a trust?
Spouses usually serve as co-trustees of their family trust. If one spouse is disabled or dies, the other remains as sole trustee. Beyond that, people tend to nominate a relative or a trusted friend to serve as a successor trustee.
Some trustors want two of their children to serve as successor co-trustees. They say, “I don’t want to hurt anyone’s feelings by favoring one over the other.” Or, “It wouldn’t be fair to leave one out.”
I usually reply:
1. Fairness doesn’t count. They’re your assets. You should decide who will control and distribute them.
2. The preparation of a living trust is an act of kindness, to save your beneficiaries the cost and inconvenience of a probate when you die. By naming children co-trustees, you risk doing an act of great unkindness to them both, by joining them at the hip, forcing them to agree on all matters.
3. Any two people of intelligence, business acumen, good will and experience will predictably disagree on many administrative details: Should we keep the house as a rental or sell it? To whom should we entrust a real estate listing? How shall we deal with creditors? How much time, effort and money should we spend evaluating and allocating assets of limited value? Which accountant and attorney should we employ?
4. What if the “kids” have never gotten along well? Maybe they don’t relate to each other, or like or respect or trust each other. Will they now work well together in lock-step?
5. We may love our children equally, but they’re not equal. They have different needs, abilities, ages, aptitudes, limitations, experiences. They may not make good “business partners.”
6. How many people does it take to drive your car? Right: one. Someone ought to be in charge.
Unless your assets are worth many millions of dollars, and you want to select three trustees to rule by majority vote, you’re probably best off appointing one person at a time to serve as successor trustee.
Jerry Kessler practices law in Santa Clarita. You may contact him at 661-255-1001.