The Successor Trustee Gap: Is Your Backup Plan Really Ready?

Creating a trust is one of the most meaningful steps you can take to protect your loved ones and preserve your legacy. A thoughtfully designed trust can help avoid probate for trust-owned assets, maintain privacy, provide structure for your beneficiaries, and ease the administrative burden on your family.

But have you considered who would step in to carry out your wishes if the individual you've chosen is no longer able to?

While many people spend considerable time selecting a trustee, one important detail is often overlooked: the successor trustee.

A successor trustee serves as your backup plan, stepping in if your original trustee is unable or unwilling to serve. Yet many trusts name a successor years (or even decades) before they're ever needed. During that time, life changes. Relationships evolve. Health changes. People relocate. A trustee who was the right choice years ago may no longer be the best person to administer your trust.

Continue reading for trust considerations from the military wealth management professionals with AAFMAA Wealth Management & Trust LLC (AWM&T).

Why This Matters for Many Military Families

Typically, families establish revocable living trusts, naming themselves—often husband and wife—as the initial trustees. This allows them to maintain complete control over their assets during their lifetime.

The successor trustee generally doesn't step into the role until one or both trustees become unable to serve due to incapacity or death.

While that day may seem far away, choosing the right successor trustee today can help ensure your wishes are carried out smoothly when your family needs guidance most.

Why the Right Successor Trustee Matters

For military families and Veterans, you’ve accrued a lifetime of benefits, pensions, and savings and desire an estate plan that reflects your goals and your service. You may have already created both your trust and your will, selecting the proper trustee. This individual plays an important role in carrying out your wishes.

Your successor trustee may be responsible for:

• Managing trust assets

• Communicating with beneficiaries

• Making distributions according to your trust document

• Coordinating with attorneys, accountants, and tax professionals

• Keeping accurate financial records

• Handling tax filings and administrative responsibilities

• Acting impartially while carrying out your wishes

If your successor trustee is unprepared or unavailable when the time comes, it could create unnecessary delays, missed tax deadlines, added stress, or additional costs for your beneficiaries.

Questions Worth Asking

Reviewing your trustee selections periodically helps ensure your estate plan continues to reflect your wishes and your family's circumstances.

Consider asking yourself:

• Is my successor trustee still willing and able to serve?

• Do they understand the responsibilities involved?

• Have their health or personal circumstances changed?

• Could serving as trustee create unnecessary stress or conflict within my family?

• Would my beneficiaries benefit from having an experienced professional fiduciary administer the trust?

Planning for the Unexpected

Just as life changes, your estate plan should evolve over time. Taking a few moments to review your trustee and successor trustee choices can help provide greater confidence that your plan will work as intended when your family needs it most.

Even if no changes are needed, a periodic review can confirm that your trust continues to reflect your wishes, your family, and your long-term goals.

Download our complimentary handout, Understanding the Successor Trustee Gap, to learn more.

Securing a Professional Successor Trustee

AAFMAA Wealth Management & Trust LLC (AWM&T) can serve as your corporate trustee, acting as a sole trustee, successor trustee, or co-trustee alongside a trusted family member.

For some families, appointing a loved one remains the right choice. For others, a professional fiduciary can provide continuity, experience, and objective administration while helping reduce the burden placed on family members during an already emotional time.

Our services include:

• Asset Management: We track, value, and manage traditional and unique assets according to your trust documents.

• Fiduciary Duties: We make impartial decisions in the best interests of beneficiaries while fulfilling our fiduciary responsibilities.

• Trust Administration: We maintain records, prepare required tax filings, and communicate directly with beneficiaries.

• Distributions: We administer distributions according to your trust's instructions and applicable fiduciary standards.

Trusted Guidance from AWM&T

If you're unsure where to begin or need assistance with estate planning, AWM&T offers trust services and estate planning guidance tailored to the unique circumstances of military families. With our support, you can create a comprehensive plan that ensures the financial security of your loved ones.

Contact us today to learn how choosing a fiduciary like AWM&T is a wise financial decision for military professionals like you. Your financial success is our ultimate goal, and we are here to support you every step of the way. Speak to a professional or call 910-307-3500 to get started.

About Us

Founded in 2012, AAFMAA Wealth Management & Trust LLC (AWM&T) was created to meet the distinct financial needs of military families. We proudly deliver experienced, trustworthy financial planning, investment management, and trust administration services – all designed to promote lasting security and independence.

We are proud to share the mission, vision, and values of Armed Forces Mutual, our parent company. We consistently build on the Association’s rich history and tradition to provide our Members with a source of compassion, trust, and protection. At AWM&T, we are committed to serving as your trusted fiduciary, always putting your best interests first. Through Armed Forces Mutual's legacy and our financial guidance, we provide personalized wealth management solutions to military families across generations.