CO-TRUSTEE
Back to GlossaryDefinition
Another person, often a family member, who serves with the trustee in helping to make decisions concerning the trust
Summary
A Co-Trustee is an additional person appointed to work alongside the primary trustee in managing and making decisions about a trust. Think of it as a partnership approach to trust management, where two or more people share the responsibilities and decision-making authority. This arrangement provides checks and balances, reduces the burden on a single trustee, and often brings different expertise or perspectives to trust administration. Co-Trustees must work together and typically need mutual agreement on major decisions.
Usage Context
Understanding Co-Trustees is important when studying trust structures, estate planning strategies, and fiduciary relationships. This concept is particularly relevant when discussing trust governance, risk management in estate planning, and family wealth management strategies.
Common Confusions
- Confusing Co-Trustees with Successor Trustees (who serve one after another vs. together)
- Thinking Co-Trustees can act completely independently without consulting each other
- Assuming all Co-Trustees have equal authority when some may have different roles
- Believing that having Co-Trustees eliminates all liability for individual trustees
