Most people who establish a revocable living trust in Syracuse serve as their own trustee during their lifetime. This arrangement preserves complete control over all trust assets, allowing you to manage investments, real estate, and bank accounts exactly as before. Management only shifts when you become incapacitated or pass away, at which point a named successor trustee manages the trust assets for the benefit of the trust creators, or distributes the property to the death beneficiaries outside of court supervision. While acting as your own trustee is the standard approach for straightforward estates, extensive investments, active businesses, or irrevocable trusts often require professional management.
At Davies Law Firm, our living trust attorneys in Syracuse help individuals and families decide who should manage their trust and when. Founder Frederick P. Davies, who has presented more than 1,000 seminars on living trusts and estate planning, and partner William P. Davies, who holds a Heckerling LL.M. in estate planning from the University of Miami, guide clients through trust and estate planning across Central New York.
This guide explains what it means to serve as your own trustee, the advantages and risks, how New York law applies, when a professional trustee may be the better choice, and how to choose a successor trustee. Schedule a telephone conference with our estate planning lawyers at Davies Law Firm at (315) 472-6511 today.
What Does It Mean to Be Your Own Trustee?
When you create a revocable living trust, you typically fill the roles of trustor, trustee, and beneficiary all at once. As trustor, you create and fund the trust. As trustee, you manage the assets inside it. As a beneficiary, you use and enjoy those assets during your lifetime.
This setup is one of the standard ways a living trust is designed to work. Moving your bank accounts and real estate into a revocable trust allows you to keep treating those assets as your personal property. You do not give up any financial freedom, meaning you can continue to buy, sell, spend, and invest your money exactly as you did before the trust existed.
What Is a Trustee Responsible For?
A trustee manages the property held in the trust and acts in the best interest of its beneficiaries.
The role carries several ongoing duties:
- Managing and investing trust assets prudently
- Keeping accurate records of income, expenses, and distributions
- Filing any required tax returns connected to the trust
- Following the terms written into the trust document
- Avoiding conflicts between personal and trust interests
Managing your own trust assets feels no different than handling your regular personal finances. These responsibilities only become structured legal requirements when a successor trustee assumes control.
How Does Being Your Own Trustee Work in Practice?
In practice, acting as your own trustee changes very little day to day. Your bank accounts, brokerage accounts, and real estate are retitled in the name of the trust, but you continue to control them. You sign as “trustee” instead of as an individual, and that is often the only visible difference.
You do not lose access to your money, and you do not need anyone’s permission to make decisions. You can also amend or revoke the trust at any time, because it remains fully under your control.
Key Takeaway: Combining the roles of trustor, trustee, and beneficiary lets you manage your trust without changing your normal financial routine. You stay completely in charge of your property until illness or death requires your backup trustee to step in.
Questions about how a living trust would fit your situation? Frederick P. Davies can walk you through the trustor-trustee setup during a telephone conference.
What Are the Benefits of Being Your Own Trustee?
The primary benefit of serving as your own trustee is control. While any competent adult can legally serve as your trustee, acting as your own allows you to make all investment and spending decisions without requiring third-party approval.
Cost is another advantage. If you appoint a professional trustee, they may charge ongoing fees based on a percentage of the assets managed. While naming a non-professional competent adult, such as a family member or friend, can bypass these fees, serving as your own trustee guarantees zero management costs, preserving more value for your beneficiaries.
Privacy also favors self-trusteeship. A properly funded revocable trust avoids probate, keeping asset and beneficiary details out of public court records. Serving as your own trustee restricts your financial management entirely to your own household.
A revocable trust also provides flexibility. You retain the power to amend terms, change beneficiaries, add or remove assets, or revoke the trust entirely.
Key Takeaway: While any competent adult can manage a trust, acting as your own trustee preserves maximum autonomy, avoids potential third-party fees, and maintains privacy. For straightforward estates, self-trusteeship during your lifetime is the standard, cost-effective approach.
William P. Davies can review if a self-trustee arrangement fits your estate goals; reach out to schedule a telephone conference.
What Are the Drawbacks of Being Your Own Trustee?
The drawbacks of serving as your own trustee surface when your investments are extensive or your health begins to decline. Managing your own trust rarely causes issues as long as you are healthy and your estate is straightforward.
The most common limitation is the administrative burden. You are responsible for recordkeeping, tax filings, and following the trust’s terms, and mistakes can create legal exposure for the trust. People with significant or unusual assets sometimes find that professional management reduces the risk of costly errors.
Conflicts of interest can also arise. This rarely happens with standard revocable trusts since the creator is the sole lifetime beneficiary. A self-trustee only faces conflicts if the trust names additional lifetime beneficiaries or if a successor trustee is also a beneficiary after the creator dies. These conflicts become a bigger issue when an estate is large or contested.
What Happens If You Become Incapacitated?
If you become incapacitated, your named successor trustee can step in to manage the trust, depending on your trust’s terms. This smooth transition is one of the central advantages of a revocable trust because it allows continuity without a court proceeding or guardianship.
Most trust documents outline a way to prove incapacity without going to court, often by requiring written letters from your doctors. Once this medical standard is met, your backup trustee can take over managing the assets for your benefit.
Are There Situations Where Self-Trusteeship Creates Problems?
Specific situations often require a more careful strategy. Blended families can bring together different financial expectations between a current spouse and children from a prior marriage. Relying on a neutral third party can create clear boundaries and provide peace of mind for everyone involved.
Similarly, if your estate includes active businesses, multiple rental properties, or other demanding investments, a self-managed approach might eventually take up too much of your time. A professional or co-trustee brings the attention and reliable oversight that these significant assets require.
Does New York Law Affect Who Can Serve as Trustee?
New York law allows most capable adults to serve as trustee, including the trustor of a revocable trust. There is no requirement to hire a professional, and serving as your own trustee is fully permitted under state law.
Managing your own revocable trust comes with almost no formal restrictions. You are simply managing your own money. You owe no fiduciary duties to anyone else while you are alive and capable.
The rules change entirely if you act as trustee of an irrevocable trust with other beneficiaries. New York law imposes strict fiduciary duties in these situations. You must follow the Prudent Investor Act when managing trust assets. You must also keep trust property separate from your personal property and maintain accurate records. Commingling assets creates legal liability.
The Onondaga County Surrogate’s Court handles trust disputes for Syracuse residents. Beneficiaries of an irrevocable trust can ask the court to review a trustee’s conduct. They can compel an accounting or ask the judge to remove a trustee who violates these duties.
When Should You Consider a Professional Trustee in New York?
A professional trustee makes sense when an estate is extensive or requires long-term administration. Common situations include sizable investment portfolios, ownership interests in a business, multiple real estate holdings, or trusts designed to support beneficiaries over an extended period.
Family dynamics also matter. When relatives are likely to disagree, a neutral professional can administer the trust without taking sides. Trusts for beneficiaries with special needs, or beneficiaries who cannot manage money well, are other strong candidates for professional management.
Irrevocable trusts deserve special attention. Because the trustor usually cannot serve as trustee of an irrevocable trust without undermining its purpose, a neutral trustee is often required to keep assets exempt from the taxable estate.
What Is a Corporate Trustee and What Do They Charge?
A corporate trustee is a bank trust department or trust company that manages trusts professionally. These institutions handle investment management, recordkeeping, tax filings, and distributions, and they remain in place regardless of any one individual’s availability or health.
Corporate trustees charge an annual fee based on a percentage of the assets they manage, sometimes with minimum fees. In exchange, they provide continuity, regulatory oversight, and experience that an individual trustee may lack. The tradeoff is cost and a degree of formality that some families find impersonal.
Can You Use a Co-Trustee Arrangement?
Yes. A co-trustee arrangement lets you serve alongside another individual or an institution, splitting the responsibilities. This hybrid approach lets you keep a meaningful voice in decisions while gaining professional support for investments, accounting, and compliance.
Many people use co-trustees as a transition tool. You serve actively while you are able, and the professional co-trustee is already in place to carry on smoothly if your health declines.
The table below compares the three main approaches, covering control, cost, recordkeeping, continuity, and the situations each option suits best.
| Feature | Self-Trustee | Professional Trustee | Co-Trustee |
|---|---|---|---|
| Control | Full personal control | Limited; institution decides | Shared with co-trustee |
| Ongoing cost | None | Annual percentage fee | Varies; can increase total fees |
| Recordkeeping burden | Falls on you | Handled by institution | Shared |
| Continuity at incapacity | Depends on successor | Built in | Built in |
| Ideal for | Straightforward estates | Extensive or contested estates | Those wanting a middle ground |
Our team can help you decide whether a professional or co-trustee arrangement fits your estate; reach out to schedule a telephone conference.
Living Trust Attorney in Syracuse, NY – Davies Law Firm
Frederick P. Davies, Esq.
Frederick P. Davies, Esq., is the founder of Davies Law Firm in Syracuse, New York. He has presented more than 1,000 seminars on living trusts and estate planning, guiding individuals and families through trust and estate planning matters across Onondaga County and Central New York.
Mr. Davies works closely with clients to help them determine who should manage their trust and when. He assists individuals through the trustor-trustee setup and provides guidance on the specific trust recordkeeping requirements mandated under New York law.
William P. Davies, Esq.
William P. Davies, Esq., is a partner at Davies Law Firm in Syracuse, New York. He holds a Heckerling LL.M. in estate planning from the University of Miami and counsels clients on comprehensive trust and estate planning throughout Central New York.
Mr. Davies helps clients evaluate successor trustee candidates, establish reliable alternate trustees, and review whether a self-trustee arrangement aligns with their long-term estate goals. He also advises clients on their legal options for removing or replacing a trustee according to the terms of their trust.
How Do You Choose the Right Successor Trustee?
Your successor trustee will manage and distribute your assets when you are no longer able to do so. You should look for someone who is organized, financially responsible, trustworthy, and genuinely willing to take on the responsibility.
A family member is a common choice for simple estates. However, relatives might not have the right skills, and they can face conflicts of interest if they are also receiving an inheritance. If your estate is large or family conflict is likely, a professional trustee is often a better choice.
Always name at least one alternate. People can become ill, move away, or change their minds. Having a backup keeps your plan moving forward without forcing your family to go to court. You can change your choices at any time as long as you are legally capable.
Before naming anyone, have a candid conversation with them. Confirm they understand the responsibility and are willing to accept it.
Key Takeaway: Selecting a successor trustee means picking someone who can manage your finances responsibly when you are no longer able to do it. It is just as important to name a reliable backup candidate. Choosing a backup prevents your family’s assets from being tied up in an expensive court process.
What Records Does a Trustee Need to Keep in New York?
A trustee in New York must keep clear, accurate records of everything the trust owns and does. Good recordkeeping is not just good practice; it is a fiduciary duty, and beneficiaries can request an accounting.
At a minimum, a trustee should maintain separate trust bank and investment accounts, never mixing trust funds with personal funds. Commingling assets is one of the most common ways a trustee creates legal exposure.
A trustee must keep track of all money coming in and going out of the trust. This includes recording every payment made to beneficiaries and tracking all expenses. The trustee also needs to create regular reports that show exactly how the trust money was handled. These records are necessary for filing the trust’s tax returns, and they provide a clear history if any questions arise later.
Finally, keep records for the long term. Tax authorities and beneficiaries may look back over several years, so retaining statements, receipts, and accountings is part of administering the trust responsibly.
Can You Remove or Replace a Trustee in New York?
While a trust is revocable, the trustor can remove and replace the trustee at will. Because you control the trust, you can name a new trustee, change successors, or restructure the arrangement at any time, as reflected in EPTL § 7-1.16, which governs the amendment and revocation of a lifetime trust by the settlor.
A trustee can also choose to resign. The trust document can set out the resignation process, and a successor named in the trust then takes over without court involvement.
After the trustor’s incapacity or death, removal becomes more formal. Beneficiaries who believe a trustee is mismanaging the trust can petition the Onondaga County Surrogate’s Court to review the trustee’s conduct and, in appropriate cases, order removal. Courts may require evidence of misconduct, conflict, or breach of duty.
Talk to a Syracuse Living Trust Attorney
Whether you should serve as your own trustee depends on more than personal preference. It depends on your assets, your family, your health, and your goals. The right choice is different for every family.
New York estate planning attorneys Frederick P. Davies and William P. Davies have helped families throughout Syracuse and Onondaga County plan revocable living trusts, choose trustees, and coordinate successor trustee planning. Our attorneys draft trust documents, advise on whether self-trusteeship or a professional trustee makes sense, and handle matters connected to the Onondaga County Surrogate’s Court when needed.
Call Davies Law Firm at (315) 472-6511 to schedule a telephone conference. From our office at 210 E Fayette St in Syracuse, we serve clients across Onondaga County and Central New York. We can review your estate, explain your trustee options, and help you build a plan that fits your goals.
Frequently Asked Questions
Can I be the trustee of my own irrevocable trust in New York?
Yes, but in most cases you should not be the trustee of your own irrevocable trust. If you maintain management power over an irrevocable trust, the Internal Revenue Service may view those assets as part of your estate at death. To achieve tax shelter benefits or asset preservation, New York residents must appoint an independent third party to manage the property.
Does being my own trustee mean I avoid probate?
Yes. Avoiding the court system depends entirely on how your property is titled, not who signs the checks. As long as your real estate and accounts are formally moved into the trust’s name during your lifetime, those assets bypass the Onondaga County Surrogate’s Court completely upon your death.
What happens to the trust when I die if I was my own trustee?
Control shifts immediately to your backup trustee without a gap in management. Your successor trustee assumes responsibility for settling remaining estate debts, handling final tax filings, and transferring ownership to your heirs based on your exact written instructions.
How is a trustee different from a power of attorney agent in New York?
A trustee manages assets held inside the trust, while a power of attorney (POA) agent manages assets outside the trust and can handle other financial matters in your name. Because some assets may never make it into the trust, estate plans should include both documents so every asset is covered.
Do I have to pay myself as trustee?
No. Individual trustees, especially trustors managing their own trust, commonly waive compensation. Professional trustees charge fees, and trustee commissions in New York are addressed under SCPA § 2309.
What if my chosen successor trustee doesn’t want to serve?
No one can be forced to act as a trustee. If your primary choice declines or cannot fulfill the duties, your listed backup will be called upon. Documenting multiple sequential alternates prevents the local surrogate court from having to appoint an administrator of its own choosing.
Can a family member serve as successor trustee if there are multiple beneficiaries?
Yes, but consider the conflict of interest risk when a beneficiary also serves as trustee. When several beneficiaries have competing interests, a neutral third party or professional trustee can administer the trust more evenhandedly.
Is a revocable living trust right for everyone in New York?
Not necessarily. A revocable living trust is a powerful tool, but it is not the right fit for every situation. A telephone conference with Davies Law Firm can give you a personalized assessment of whether a trust suits your goals.
