When you create a living trust, choosing the right trustee is a big decision. But what if you want two trustees to manage it together? This article explores whether having two trustees is possible, the pros and cons, and what you should consider when deciding.

What Is a Living Trust?  

A living trust is a legal tool to manage your assets during your lifetime and after your death. Unlike a will, a living trust avoids probate, making the asset transfer faster and more private.  

The trustee is the person or institution managing the trust. Their job includes paying bills, managing investments, and distributing assets to beneficiaries. A living trust can give you peace of mind knowing your affairs are in capable hands.  

Can a Living Trust Have Two Trustees?  

Yes, a living trust can have two trustees. When a trust has two trustees, they're called co-trustees. Co-trustees share responsibility for managing the trust.  

This setup is common among married couples or business partners. It's also a good choice if you want to balance responsibilities or ensure accountability.  

How Do Co-Trustees Work?  

Co-trustees must work together to manage the trust. They need to agree on decisions, such as selling property or making distributions. If the trust allows, they may divide tasks. For example, one trustee handles finances while the other manages communication with beneficiaries.  

Pros of Having Two Trustees  

Shared Responsibility  

Two trustees split the workload. This reduces the stress on one person and ensures tasks are handled efficiently.  

Checks and Balances  

Co-trustees can keep each other accountable. This reduces the risk of one person mismanaging the trust.  

Continuity  

If one trustee becomes unavailable, the other can step in. This ensures the trust continues to function smoothly.  

Cons of Having Two Trustees  

Potential Conflicts  

Co-trustees must agree on decisions. If they don't, disagreements can delay important actions or harm relationships.  

Slower Decision-Making 

Decisions may take longer because both trustees must coordinate and agree.  

Geographic Challenges

If co-trustees live in different states, managing the trust may become complicated. They may face challenges like scheduling meetings or signing documents.  

Key Considerations When Naming Two Trustees  

Having two trustees isn't always the right choice. Here's what to think about before deciding:  

Compatibility

Choose co-trustees who work well together. They should share similar values and decision-making styles.  

Clear Guidelines

Your trust document should explain how decisions are made. Include details like: 

• Do both trustees need to sign off on all actions?
• Can one trustee act alone in emergencies?  

Dispute Resolution

Include a tie-breaker mechanism in your trust. For example, you could require mediation or appoint a third-party arbitrator.  

Successor Trustees

Plan for what happens if both trustees can't serve. Name one or more successor trustees in the trust document.  

Real-Life Example: Co-Trustees in Action  

Imagine a married couple, Sarah and Tom, who set up a family living trust. They named themselves as co-trustees. Sarah handled the finances, while Tom managed communication with their beneficiaries.  

When Tom had a health issue and couldn't serve, Sarah seamlessly took over. The clear division of tasks and backup plan ensured their trust functioned without disruptions.  

How a Texas Estate Planning Attorney Can Help  

A living trust is only as strong as its design. A Texas estate planning attorney ensures your trust works for your family's needs.  

Here's how we can help:

• Draft Clear Documents: We write detailed trust agreements to avoid misunderstandings.
• Guide Trustee Selection: We help you decide if co-trustees make sense for your situation.
• Avoid Pitfalls: We anticipate potential issues, like trustee conflicts or logistical challenges.
• Tailor Solutions: Every family is unique, and we customize trusts to your specific goals.  

Frequently Asked Questions  

Can One Trustee Act Alone?

It depends on the trust document. Some trusts allow independent action, while others require both trustees to agree.  

What Happens if Co-Trustees Disagree?

Your trust should include a dispute resolution plan. Without one, disagreements may lead to delays or legal intervention.  

Can Co-Trustees Be Removed?

Yes, but the trust document must allow it. You may also need court approval, depending on the situation.  

Final Thoughts  

Having two trustees in a living trust can work well, but it's not for everyone. Co-trustees share responsibilities and provide accountability, but they can also face challenges like conflicts or slower decisions.  

If you're considering co-trustees, consult an experienced Texas estate planning attorney. We'll guide you through the process and ensure your trust serves your family's needs.  

Ready to start planning your trust? Contact our office today for a consultation.