Picking a trustee is one of the biggest choices in your estate plan. Your accountant knows your money, gets your tax picture, and has offered to help. That sounds like a good fit. But being a trustee takes much more than keeping good records. The role carries real legal weight.
What a Trustee Actually Does
A trustee manages the trust based on the rules in your trust document. That means investing assets wisely, giving money to heirs, filing trust tax returns, keeping detailed records, and following Arizona fiduciary (a legal duty to act in your best interest) law. The trustee must run the trust for the benefit of the heirs. Not for their own ease.
This is a legal duty, not a favor. If the trustee makes a mistake, they can be held personally liable.
Where Accountants Excel
An accountant brings real strengths to the trustee role. Tax prep, record-keeping, and money reports are second nature to most CPAs. If your trust is simple and the main task is keeping the books in order, your accountant may do a great job.
Accountants also tend to be detail-focused and organized. These traits matter when you manage a trust over many years.
Where Accountants May Fall Short
The trustee role goes well beyond taxes and bookkeeping. It includes:
- Investing. The trustee must invest trust assets wisely under Arizona's Prudent Investor Act. Most accountants are not licensed to give investment advice.
- Family issues. The trustee often ends up in the middle of family fights about money. This takes people skills that accounting training does not cover.
- Legal rules. A trustee must know trust law, fiduciary duties, and how to handle disputes. A pro trustee or trust company deals with these issues every day.
- Time. Running a trust can take a lot of time. This is especially true if there are many heirs, real estate, or business interests.
Potential Conflicts of Interest
If your accountant is also the trustee, they may end up doing the tax returns for a trust they run. That creates a conflict. They are checking their own work. Some industry rules do not allow this dual role. Ask whether your accountant's firm permits it.
Individual Trustee vs. Professional Trustee
A person you know, whether a friend, family member, or accountant, brings personal insight. They often charge less too. But people get sick, move away, or burn out over time.
A professional trustee, such as a trust company, offers staying power, independence, and deep know-how. They charge a fee based on a share of trust assets. It is usually 0.5 to 1.5 percent per year. For larger or more complex trusts, the cost is often worth the peace of mind.
The Co-Trustee Option
Some families pair a person they know with a corporate trustee as co-trustees. The person brings family insight. The pro handles investments, tax filings, and legal rules. This mix can work well when the trust is large or complex.
Questions to Ask Before Deciding
Before naming your accountant or anyone else as trustee, ask these questions:
- Are they willing to serve for years or even decades?
- Can they handle investment choices, not just tax returns?
- Are they okay saying no to an heir who wants more money?
- Do they carry errors and omissions insurance?
- What happens if they retire, get sick, or pass away?
The right trustee is someone who can manage the trust well and handle the human side of the job. Make this choice with care. It shapes how your plan works for the people you love most.