For more than 35 years, Northwest Trustee & Management Services has guided individuals and families through the complexities of trust and estate administration. One of the most common decisions clients face is whether to appoint a trusted friend or family member to manage their trust—or to rely on the expertise of a professional trustee.
For example, consider Anita, a professional in her 50s living in Seattle who wants to set up trusts for her children to leave assets to them in the future. She wants to ensure her family has professional guidance and mitigate any challenging dynamics that could arise if a friend or family member was the trustee.
She decides to select a professional trustee, knowing that they will have the expertise to administer the trust and objectively navigate any complex situations that may arise.
Anita selects a trust company that offers personalized service and has deep experience in staying current with fiduciary best practices and applicable Washington state laws. With that peace of mind, Anita feels confident her intentions will be honored and her loved ones cared for, all while sparing her family unnecessary stress in the future.
For many individuals, entrusting trust administration to a professional is often the preferred route. But what factors should be considered when choosing a professional trustee over a family member or close acquaintance?
What Is a Professional Trustee?
A professional trustee is an individual or trust company that is appointed to manage and administer a trust on behalf of an individual, family, or organization.
Unlike a friend or family member who may be chosen out of familiarity or convenience, a professional trustee brings experience, objectivity, and a deep understanding of the legal and financial responsibilities involved in trust administration.
In Washington State, trustees must adhere to specific legal and fiduciary obligations under the Washington Trust Act, including acting in the best interest of the beneficiaries, managing assets prudently, and ensuring full compliance with state and federal laws.
A professional trustee is typically compensated for their services, but the value they provide, especially in complex or long-term trust arrangements, often far outweighs the cost.
Why Choose a Professional Trustee in Washington State?
Selecting a professional trustee offers several advantages, especially when your trust must comply with Washington-specific laws and tax rules.
Professional trustees are well-versed in statutes like RCW 11.98, understand how to comply with the Washington Department of Revenue’s trust taxation requirements, and are knowledgable about Washington’s specific rules and regulations.
Unlike a family member or friend who may lack necessary fiduciary knowledge and expertise, a professional trustee brings impartiality, adheres strictly to the terms of the trust, and helps reduce the risk of conflicts among beneficiaries.
What Does a Professional Trustee Do?
The duties of a professional trustee are wide-ranging and may require a high level of skill and attention to detail.
First and foremost, a trustee must follow the terms of the trust document, making sure that assets are distributed according to the wishes of the grantor. This includes evaluating requests from beneficiaries, interpreting discretionary distribution language, and ensuring all decisions are consistent with the trust’s intent.
A trustee is also responsible for managing trust property, which may include real estate, investment accounts, or closely held business interests. They coordinate with legal, tax, and financial professionals to safeguard the trust’s assets and to fulfill tax filing and reporting obligations.
In Washington, this also means complying with the Washington Principal and Income Act, which governs how income and principal are allocated among beneficiaries, and being aware of Washington specific rules related to decanting and directing tusts.
Trustees must also maintain detailed records, provide regular statements, and communicate with beneficiaries in a clear and timely manner. In situations where conflicts arise, the professional trustee may acts as a mediator, resolving issues amongst beneficiaries before they escalate.
Who Should Consider a Professional Trustee?
Individuals with complex estates, blended families, or long-term trust arrangements should strongly consider appointing a professional trustee. This option is especially valuable for those who want to avoid burdening loved ones with administrative responsibilities or potential family conflicts. Professional trustees offer expertise in legal compliance, tax strategy, and asset management, ensuring the trust is administered accurately and impartially. They’re also ideal for grantors who value continuity—since trust companies provide stability that isn’t dependent on any one person’s health, availability, or lifespan.
Choosing a Professional Trustee
Choosing the right trustee is one of the most important decisions in your estate planning process. If you are considering a family member or friend, reflect on the following questions:
- Do they have the knowledge and experience to manage the trust efficiently and in compliance with all legal requirements?
- Do they have the time and capacity to commit to the ongoing responsibilities of trust administration?
- How complex are your trust assets? For example, would someone without prior knowledge of your assets be able to navigate real estate, collectibles, business interests, special needs planning, or other unique assets such as mineral rights, farmland or timberland?
- Is your loved one emotionally equipped to manage trust duties while grieving?
- Could existing family dynamics or personality differences among beneficiaries create additional challenges during administration?
- Can they be relied upon to remain impartial in their decision-making – and will your beneficiaries view their actions as fair and neutral?
- Are they prepared to accept the legal obligations and personal risks that come with serving as a trustee, or are they simply agreeing out of a sense of duty or obligation?
Whether you’re setting up a new trust or considering a change in trustee, our Washington-based trust company can help guide you through the options.
For over 35 years, Northwest Trustee & Management Services has specialized in administering trusts with professionalism, transparency, and compassion, ensuring that your intentions are carried out and your beneficiaries are cared for and supported.
Contact us today to schedule a consultation and learn more about how Northwest Trustee can support your goals.