Guidance from Duncan Legal, PC
When creating a trust, many parents instinctively choose an adult child to serve as trustee. It feels natural. Who knows the family better? Who cares more about protecting everything you have worked for?
At Duncan Legal, PC, we regularly walk Colorado families through this decision. While naming an adult child works well in some situations, it is important to understand that being a loving family member and serving as a fiduciary are two very different roles. In certain cases, asking an adult child to serve as trustee can create more problems than it solves.
The Trustee Role Is a Legal Responsibility
A trustee is not simply “in charge.” A trustee has a legal duty to:
- Manage assets prudently
- Follow the specific terms of the trust
- Treat beneficiaries impartially
- Maintain accurate records
- Handle tax reporting and filings
- Oversee investments
- Make appropriate distributions
- And sometimes say no
At Duncan Legal, PC, we emphasize that this role carries legal accountability. A trustee can be held personally liable for mistakes, even if those mistakes were unintentional.
When Family Dynamics Become Complicated
Family conflict is one of the most common risks we see.
When one child serves as trustee and others are beneficiaries, even routine decisions can feel personal. A decision about whether to sell real estate, when to make a distribution, or how to invest trust funds may quickly turn into accusations of favoritism.
Even in loving families, the trustee-child can become the “bad guy” simply for following the instructions in the trust. At Duncan Legal, PC, we often counsel families on how to structure their plans to reduce the likelihood of these tensions before they arise.
Geography and Practical Realities
Many Colorado families have children who live out of state. While technology makes communication easier, geography still matters.
If a trustee lives in another state, managing property, coordinating with local advisors, and handling administrative matters can become burdensome. Travel, time zone differences, and unfamiliarity with Colorado professionals can complicate administration.
At Duncan Legal, PC, we encourage clients to consider whether the proposed trustee has the time and proximity needed to fulfill the role effectively.
Being Responsible Is Not the Same as Being Equipped
Trust administration requires more than good intentions.
Recordkeeping, tax compliance, investment oversight, and understanding distribution standards all require attention to detail and financial organization. A child may be trustworthy and well meaning, but still lack the technical skills required.
We regularly advise clients at Duncan Legal, PC that the trustee position is closer to a financial manager than a family representative. Without preparation, mistakes can occur and those mistakes can carry consequences.
The Emotional Toll
Serving as trustee often begins during a period of grief. At the same time, the trustee may be managing sibling expectations and family history.
Balancing legal duties with emotional relationships can strain even strong families. One of our goals at Duncan Legal, PC is to help clients create plans that protect not only assets, but also relationships.
Considering Alternatives
In many cases, families benefit from exploring alternative options, including:
- A professional fiduciary
- A corporate trustee
- A co-trustee arrangement combining a family member with a neutral professional
A neutral third party can provide objectivity, technical expertise, and a buffer that reduces family tension. While professional trustees may involve additional cost, preserving family harmony is often worth the investment.
At Duncan Legal, PC, we help families evaluate these options carefully so the trustee selection aligns with their long term goals.
Choosing the Right Fit
Selecting a trustee is not simply about trust in a person. It is about matching the responsibilities of the role with the right individual or institution.
Thoughtful planning early can preserve both financial stability and family relationships later. If you are creating or reviewing a trust, this is an important conversation to have.
Duncan Legal, PC is here to guide you through that decision with clarity and foresight.
Visit Us: 6436 S Racine Cir, Ste 227, Centennial, CO 80111
Call: (720) 506-2536
Protect your assets, your care options, and your peace of mind by planning ahead with Duncan Legal, PC so you and your family can move forward with clarity and confidence.
