When you create a trust you appoint a trustee to act in your best interests and manage the trust for the benefit of your designated beneficiaries. However, in certain situations you may consider having multiple trustees, referred to as co-trustees. Sometimes you may have a personal reason for wanting to appoint co-trustees. For example, a parent may want to appoint all their children as co-trustees so it does not appear that they are favoring one child over the other. In the alternative, it may be necessary to avoid adverse tax consequences which would penalize a sole trustee.
In contrast, sometimes it may be preferable to appoint only one trustee to administer the trust. For example, if you believe that co-trustees would have difficulty reaching mutual decisions, they may have to seek court intervention to make decisions. Therefore, it would be more costly to have co-trustees. If you have more questions regarding administration of a trust or trust drafting in California, you should consult with an experienced Los Angeles estate litigation lawyer.
