Why Naming Co-Trustees Can Complicate Your Estate Plan in Ohio

Estate planning decisions are usually made with the best intentions, especially when family dynamics are involved. Naming co-trustees often feels like a way to keep the peace and ensure everyone has a voice. Yet co-trusteeship frequently introduces uncertainty into Ohio estate plans, even when everyone involved is capable and well-intentioned. Knowing how co-trusteeship actually works can help you avoid problems that surface when your loved ones are least prepared to deal with them.

The Role of a Trustee in Ohio

A trustee is the person appointed to oversee the management of a trust. The trust will outline the responsibilities and when their duties begin. Their duties could begin immediately or upon the death of the person who formed the trust. A trustee’s duties can vary, but typically include managing investments, distributing assets, and record keeping.

Ohio laws dictate that trustees have a fiduciary duty to act in the best interest of the trust’s beneficiaries. A trustee must have a commitment to their role. If a trustee fails to fulfill their role in a way that violates their fiduciary duty, they could face legal action.

Common Problems from Naming Co-Trustees

Several potential complications can arise when you decide to name multiple co-trustees. The more people you involve in the decision-making process, the greater the potential for delays and conflict. Co-trustees are often required to act jointly or agree to an action. If everyone doesn’t, then there is a delta until the disagreement is resolved. There is no Ohio statute governing deadlock resolution, so resolving deadlocks can be challenging.

Family Relationships

When co-trustees are family members, there is the added issue of family dynamics that come into play. Differing opinions and interpersonal relationships can complicate matters. Emotional distress and strained relationships are common with co-trustee disagreements among family members.

Joint Liability

Under Ohio law, trustees are generally liable for performing their fiduciary duties. If there are multiple co-trustees, they are all held individually liable. That means they must oversee each other to ensure that none of the other co-trustees does anything that constitutes a breach. If one of the trustees does do something to violate their fiduciary duty, the other co-trustees could be liable. This level of oversight obligation creates significant personal risk.

Administrative Complexity and Costs

The more co-trustees that are involved, the greater the administrative complexity and costs. Signature coordination with attorneys, meetings, and paperwork filings all generate costs. The increased costs mean greater expenses for the estate. If a dispute arises, legal fees can be even higher.

Logistical Challenges

Even if co-trustees agree, there are logistical challenges that come with having multiple trustees. Different schedules, locations, and commitment levels can make coordination difficult. These challenges can delay basic administrative tasks.

Alternatives to Naming Co-Trustees

Working with an estate planning attorney can provide you with valuable guidance on your estate planning options. While you may want to name multiple trustees, it may not be the best option for your situation and wishes. Thankfully, there are several alternatives that your attorney can suggest.

Single Trustee with Successor Trustees

Instead of naming everyone as a co-trustee, name one person as the primary. Then, list additional individuals as successor trustees. That way, there is fairness, but there is also a hierarchy to ensure timely decision-making.

Give Defined Roles

If you want to name several people as co-trustees, you could give them defined roles. Each person has the decision-making and authority over their area. That way, everyone plays a role without overlapping responsibilities.

Neutral Third Parties

Avoid potential family conflict totally by assigning a professional trustee. This is someone who is a neutral third party who will oversee decisions. Professional trustees are typically a bank, an attorney, or a trust company. A neutral third party takes the emotion out of the process and helps to balance family involvement.

Best Practices When Considering Co-Trustees in Ohio

If you do not wish to deviate from naming multiple co-trustees, there are several things you can do to help the process go more smoothly. Work with an attorney to draft clear language about duties and authorities. For example, include decision-making requirements such as majority controls or unanimous consent required. Include a method for resolving deadlocks.

Try to choose co-trustees who already get along and have a similar mindset. It can also be helpful for them to have similar communication styles. Complementary skills can be useful for creating a more effective trustee management.

Create Your Estate Plan

Co-trusteeship may appear to offer balance, but it often creates unnecessary obstacles during trust administration. Ohio families are frequently surprised by how quickly disagreements, liability concerns, and court involvement can follow. Our estate planning team focuses on building trust structures that protect assets while minimizing stress for the people left in charge. Contact our office today to review your trust and ensure your trustee choices align with your goals.