How Cotrustees Share Authority and Liability

Decision-Making and Disagreements

Naming cotrustees can add checks and balances. It also creates the chance of deadlock. The law addresses this directly: if cotrustees cannot agree, the majority rules.

When a vacancy occurs, the remaining cotrustees continue to act for the trust. They do not need court approval or a replacement.

Each cotrustee must take part in managing the trust. A cotrustee cannot simply step back and let the others handle everything. The only exceptions are absence, illness, or another temporary issue.

If one cotrustee is temporarily unavailable and action is urgent, the remaining cotrustees can act. This keeps the trust running without delay.

Delegation and Liability Between Cotrustees

A trustee may delegate specific tasks to a cotrustee unless the trust requires joint action. That delegation can be revoked at any time. For example, one cotrustee might handle investments while another manages real estate.

The liability rules are practical. A trustee who does not join in another trustee's action is not liable for it. But that protection has limits.

Every trustee has a duty to use reasonable care to prevent a cotrustee from committing a serious breach. They must also try to compel a cotrustee to fix one if it occurs.

A dissenting trustee who goes along with the majority can document the dissent at or before the action. That written record protects them from liability, unless the action is a serious breach. Putting disagreements in writing is a legal safeguard.

Cotrustees can pool their skills to manage trust funds and other assets. But each person must stay involved. Stepping aside entirely can create personal liability.

Choosing cotrustees who communicate well and share similar values can help avoid conflicts. If disagreements arise, the majority-vote rule keeps things moving forward.