When a Fiduciary Cannot Be Trustee

Who This Restriction Applies To

Some trustees are licensed professionals. They manage estates, trusts, and guardianships for pay. The state holds them to strict standards.

When one of these professionals loses their license, this statute blocks them from acting as trustee. The restriction protects beneficiaries from people whose conduct led to discipline.

The rule is broad. It covers every type of trustee role, including initial trustee, successor trustee, or co-trustee. The ban takes effect as soon as the license is suspended or revoked.

The Family Exception

There is one narrow exception. A fiduciary with a suspended or revoked license may still serve as trustee. They must be a relative of the beneficiary by blood, adoption, or marriage.

Family members often serve as trustees outside of professional licensing. The family tie provides a separate basis for trust and accountability.

If the fiduciary's license is later reinstated and in good standing, the ban no longer applies. They may resume serving as trustee for any trust.

How This Affects Families Choosing a Trustee

This statute matters when families consider a bank, trust company, or other professional to manage their trust. Always verify that the person or entity holds a valid license with no history of suspension.

Families should review a guardian or conservator with fiduciary duties using the same care. A license problem in one area can affect their ability to serve in another.

For court appointments, judges typically verify licensing status before approving a professional fiduciary. When families name a trustee in their own trust documents, the duty to check falls on them.