Choosing an Independent Trustee in Colorado: Questions to Ask

Choosing an independent trustee starts with understanding the work your trust needs. A trust holding a Colorado home and cash may present different demands from a trust holding investments, a business interest or assets that will be administered for many years.

Use the questions below to compare potential trustees and prepare for an initial discussion. ColoradoTitle’s trust administration and fiduciary services page describes the matters we consider.

1. What Role Are We Asking You to Accept?

Clarify whether the proposed engagement is to serve as trustee, assist an existing trustee with administration or provide a separate professional service. These roles carry different responsibilities. Ask how the trust document identifies or permits appointment of a successor and what steps are needed before the candidate can act.

Being an attorney or accountant does not, by itself, make someone the trustee. Have the governing documents reviewed and confirm the appointment and acceptance process before expecting the candidate to make decisions or move assets.

2. Have You Handled Assets Like Ours?

Ask for an explanation of relevant experience, without requesting another family’s confidential information. A candidate should be able to describe how they would approach the practical work associated with your assets.

• For real estate: how would maintenance, insurance, occupancy and a possible sale be coordinated?
• For a business interest: what additional records or specialist advice might be needed?
• For investment accounts: how would the trustee work with investment professionals?
• For out-of-state beneficiaries: how would documents, decisions and updates be shared?

Also ask about capacity. Who will do the day-to-day work, who will make decisions and who covers absences? A familiar name is less useful than a clear explanation of responsibility.

3. How Will You Communicate With Beneficiaries?

Ask what a routine update looks like, how questions are submitted and who is the regular contact. Discuss how accountings and supporting records will be organized. If beneficiaries have different expectations, ask how the trustee explains decisions and documents the reasons for them.

Colorado’s trust code addresses impartiality among beneficiaries and duties to inform and report. Impartial administration does not mean every beneficiary necessarily receives the same distribution; the trust’s terms and differing interests matter. See sections 15-5-803 and 15-5-813 of the Colorado Revised Statutes, Title 15.

4. How Are Fees and Other Expenses Calculated?

Request a written explanation of the proposed compensation. Ask whether fees are hourly, based on assets, subject to a minimum or calculated another way. Ask which tasks are included and which expenses are paid separately.

• Is there an initial review or acceptance fee?
• How are real estate management, a sale or unusual administrative work billed?
• Are outside legal, accounting and investment services additional?
• How are invoices or fee calculations explained?
• What happens to fees if the trust continues longer than expected?

The trust’s compensation provisions and applicable law also matter. Colorado’s trustee-compensation statute is section 15-5-708. A proposed fee schedule should be evaluated in that context rather than treated as the only governing document.

5. Can You Work With Our Existing Advisors?

A family may already have an attorney, CPA or investment advisor. Ask whether those relationships can continue and how responsibilities would be divided. Clarify who prepares tax returns, maintains records, handles investment decisions and coordinates any real estate transaction.

If the candidate or an affiliated firm may provide additional paid services, ask how those roles, charges and potential conflicts will be disclosed and addressed. Clear responsibilities help avoid duplicated work and confusion about who is acting for whom.

6. What Happens if You Cannot Continue?

Ask about succession, resignation and the transfer of records. Discuss how another trustee would obtain the information needed to take over, subject to the trust and applicable requirements. This is particularly useful when administration may continue for years.

Prepare for the First Conversation

Start with a copy of the trust and amendments, a general asset list, the reason a new trustee is being considered and the immediate issues that need attention. You can begin with an overview; confirm an appropriate method for sending sensitive documents before sharing account records.

A useful first meeting should identify the proposed role, missing information, likely administrative work and the next steps for deciding whether the engagement is a fit. There is no need to choose solely on the lowest quoted fee or the largest provider’s name.

Discuss a Colorado Trust or Fiduciary Matter

ColoradoTitle considers appropriate independent trustee and trust-administration engagements involving Colorado assets, beneficiaries and professional advisors. Call 720-681-0903 or contact ColoradoTitle to discuss the trust and the help needed.

This article is a preparation guide, not a determination of appointment authority, beneficiary rights or the requirements of a particular trust.