08 Jan Can I Refuse the Job of Trustee? Who Can Do It for Me?

Most of the time, being named as the administrator of a trust doesn’t come as a surprise. The founder of the trust will usually get permission from the person they plan on naming as their successor trustee. However, there are some cases where an individual is unaware that they have been listed as a trustee. 

Occasionally, someone will name a relative they find trustworthy as their trustee without asking them first. After they pass away, and the previously unaware individual discovers they’re now the administrator of a trust, many questions arise. Some people want to know more about the duties involved and others simply don’t want the job. They ask us, “Do I have to do this? Can I refuse the job of trustee?” The answer is yes—you can refuse to be the trustee if you don’t want the responsibility. 

Declining to Administer a Trust

A person who has not yet accepted the responsibility of trustee is allowed to refuse the job. Here are a few main points around the decision of accepting or declining. 

• The position must be formally accepted if you want to do the job.
• If a reasonable amount of time passes, and the named trustee does not accept, the court will consider them to have rejected the job.
• No formal declination (refusal) is required in the state of Arizona.
• It’s helpful to decline in a timely manner if you’re certain this isn’t a responsibility you want.

If you decline, what happens next? Who will act as trustee in your place? If no one else is named as an executor in the estate plan, are you obligated to accept the job or find a replacement? 

Who Can Act as Trustee If I Refuse the Job? 

You are not obligated to accept unless you’ve already begun the duties of administration. In this case you will be required to continue. It’s important not to start unless you’re confident you can finish the job.

Depending on how the trust was drafted, it should also name a secondary trustee. That person can accept the responsibility if you decline the position. If no other administrator was named, and no one steps forward, the court will name a new trustee. 

What if I already accepted the position of trustee, but I changed my mind? 

If the trust agreement named you as trustee and you accepted this responsibility while the estate owner was still living, you will most likely still be able to decline. Many people have accepted the duties of a trustee without understanding the full weight of the responsibilities ahead of them. If you find yourself in this position, you can still say no. Just remember not to take any administrative actions. 

Can I keep the title of trustee and still hire a professional administrator?

Yes, as a trustee in Arizona, you can hire a professional (such as a financial advisor or an attorney) to assist with administering the trust and managing the responsibilities of a trustee. Your best option is to hire an estate planning lawyer who has extensive knowledge in financial and legal matters. 

However, if you hire an administrator to fulfill your role, it’s important to understand the following points:

• As trustee, you are still legally responsible for overseeing the administration of the trust and making sure the terms of the trust are followed.
• Although many duties can be delegated to a professional, your involvement is still required. This means you’ll have to supervise tasks and make decisions when necessary. 

Trust Administration Services in Glendale, Arizona

The idea of administering a trust can be overwhelming, especially when you weren’t expecting it. You may not even know where to start. At Phelps LaClair, we’ve been helping our fellow citizens of Arizona with estate planning and trust administration for decades. If you want to pass on the responsibilities of trustee to a qualified firm, we’re here for you. 

Our goal is to take all the pressure off your shoulders. Stop worrying and get some clarity today by giving us a call—schedule a free consultation to find out how we can help.  

Images used under creative commons license – commercial use (12.27.2024). Photo by Handsup -U on Unsplash.