Co Trustees Pros and Cons

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When you create a trust in Atlanta, Georgia, one of the most important decisions you will make is choosing who will manage it. Many people name a single trustee. Others choose to name two or more people to serve together as co-trustees. This can be a smart choice, but it also comes with real trade-offs. At Slowik Estate Planning in Atlanta, Georgia, we help clients think through this decision carefully so their trust works the way they intend. Whether you are setting up a revocable living trust, an irrevocable trust, or any other arrangement, understanding the pros and cons of co-trustees is a key part of building a solid estate plan.

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What Is a Co-Trustee Under Georgia Law?

A co-trustee is simply a person who serves alongside another trustee to manage a trust together. Georgia law allows for this arrangement, and the Revised Georgia Trust Code of 2010, found in O.C.G.A. Title 53, Chapter 12, sets out the rules that govern how co-trustees work. When you name co-trustees in your trust document, both of them take on the full duties of a trustee. They are each responsible for acting in good faith and in the best interest of the trust beneficiaries.

Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its provisions and purposes. This duty applies to each co-trustee individually. Neither one can simply defer to the other and walk away from their responsibilities.

If there are co-trustees, Georgia law requires that decisions be unanimous. If a co-trustee becomes unable to act, the remaining trustees may act as if they were the only trustees when necessary. This rule is codified in O.C.G.A. § 53-12-204. So what does that mean for you? It means that both co-trustees must agree before the trust can take most significant actions. This is both a strength and a potential weakness, depending on who you choose and how well they work together.

While a cotrustee is unable to act because of inaccessibility, illness, or other temporary incapacity, the remaining cotrustee or cotrustees may act as if they were the only trustees when necessary to accomplish the purposes of the trust. This built-in flexibility is one reason why co-trustees can be a practical choice for many Georgia families. You can also name a family member as one co-trustee and a professional or institution as the other, giving you the benefit of both personal knowledge and professional management. Before you decide, it helps to understand both the advantages and the drawbacks of this structure.

The Pros of Naming Co-Trustees in Atlanta, Georgia

There are real benefits to naming co-trustees, and for many families in Atlanta, the arrangement makes a lot of sense. The most common reason people choose co-trustees is the built-in system of checks and balances. When two people must agree before the trust takes action, it is much harder for one person to misuse trust assets or make a decision that harms the beneficiaries. This oversight can be especially valuable when the trust holds significant assets like real estate, investment accounts, or a family business.

Another major benefit is continuity. Think about what happens if your sole trustee becomes ill, moves out of the country, or simply becomes unable to manage the trust. With co-trustees, where there are co-trustees, powers may be delegated among them, and surviving co-trustees may act for the trust when there is a vacancy in the office of co-trustee or when a co-trustee is unable to act. This means your trust keeps running without interruption, which protects the people who depend on it.

Co-trustees also allow you to combine different types of knowledge and skill. For example, you might name one of your adult children who knows your family well alongside a bank trust department that has professional investment experience. The family member can make decisions about distributions to loved ones, while the institutional co-trustee handles the financial side. This kind of pairing can work very well for complex estates, especially those involving International Estate Planning or assets in multiple states.

Co-trustees can also reduce family conflict. When siblings feel that one person has too much power over the family trust, resentment can build. Naming two or more family members as co-trustees can make everyone feel included. It signals fairness and shared responsibility. Of course, this only works if the co-trustees can communicate and cooperate. If they cannot, the benefit disappears quickly, which leads us to the other side of this conversation.

The Cons of Naming Co-Trustees in Atlanta, Georgia

The same features that make co-trustees attractive can also create serious problems. The unanimous decision-making requirement is the most common source of trouble. While recognizing the general rule that the unified action of all the trustees is required to dispose of trust property, under Georgia law, each trustee has the duty and is clothed with the authority necessary to protect the corpus of the trust. In practice, this means that if your two co-trustees disagree about selling a piece of property or making a distribution, the trust can get stuck. Nothing moves forward until they agree, or until a court steps in.

Deadlocks are a real risk, and they can be costly. If co-trustees reach an impasse, the beneficiaries may have to go to court to resolve it. That means legal fees, delays, and family stress, all of which eat away at the trust assets you worked hard to build. If a particular course of action is in the best interests of the trust and one trustee refuses to act, then court approval would be required. This is not a hypothetical problem. It happens in Georgia courts regularly, especially in trusts where siblings serve as co-trustees and old family tensions resurface.

There is also the issue of shared liability. Each co-trustee can be held responsible for the actions of the other. Under O.C.G.A. § 53-12-300 through § 53-12-308, a co-trustee who knows about a breach of trust by the other trustee and fails to act can face liability. No provision in a trust instrument shall be effective to relieve the trustee of liability for a breach of trust committed in bad faith or with reckless indifference to the interests of the beneficiaries. This means you cannot simply draft away the risk by adding language to the trust document. Both co-trustees must stay engaged and informed at all times.

Coordination can also be a logistical headache. Co-trustees must communicate regularly, sign documents together, and stay aligned on the trust’s goals. If one co-trustee lives in another state or is difficult to reach, even routine trust administration tasks can slow to a crawl. This is why the structure of your co-trustee arrangement matters as much as who you choose.

How Georgia Law Handles Co-Trustee Disputes and Liability

Georgia law has specific rules about what happens when co-trustees disagree or when one of them acts improperly. Understanding these rules helps you plan smarter. The Revised Georgia Trust Code of 2010 under O.C.G.A. Title 53, Chapter 12, Article 11 (§§ 53-12-200 through 53-12-221) covers trustees in detail, including co-trustee situations. Article 14 (§§ 53-12-300 through 53-12-308) addresses what happens when a trustee breaches their duties.

One important protection is that the trust document itself can modify some of the default rules. For example, you can draft your trust to allow a majority vote among co-trustees rather than requiring unanimity. This is a common solution for trusts with three or more co-trustees. You can also divide responsibilities clearly in the trust document, assigning investment decisions to one co-trustee and distribution decisions to another. This kind of drafting can prevent many disputes before they start.

The 2018 amendment deleted a former subsection which had provided that when a trust reserves to a co-trustee, to the exclusion of one or more trustees, the authority to direct the making or retention of any investment, the excluded trustee shall be liable only as a ministerial agent and not as trustee for any loss resulting from the making or retention of any investment pursuant to the authorized direction. This change in the law means you need to be especially careful about how you draft co-trustee responsibilities in 2026. The old safe harbor for excluded co-trustees no longer applies in the same way.

When it comes to accountability, the certification of trust shall contain the identity and address of each current trustee and, if more than one, the number and identity of those required to exercise the powers of the trustee. Third parties dealing with your trust, like banks and title companies, will want to know exactly how many co-trustees must sign off on a transaction. This is another reason why clear drafting matters. Your trust document should spell out the decision-making process in plain terms so there is no confusion when the time comes to act. An Atlanta estate planning lawyer at Slowik Estate Planning can help you draft these provisions correctly from the start.

Choosing the Right Co-Trustee Structure for Your Atlanta Estate Plan

So how do you decide whether co-trustees are right for your situation? The answer depends on your family dynamics, the size and type of your assets, and your goals for the trust. There is no one-size-fits-all answer. But there are some questions you should think through carefully before you make this decision.

First, do your proposed co-trustees actually get along? This sounds simple, but it is the most important question. Two people who cannot agree on small things in everyday life will struggle to agree on trust decisions. If you are naming siblings as co-trustees, think honestly about whether they have a history of cooperation or conflict. Family dynamics do not improve under the pressure of managing money and making decisions about inheritances.

Second, do your proposed co-trustees have the skills needed for the job? Managing a trust is a real responsibility. A lawyer can advise you on any effects on taxes or plans. You have a duty to manage the money and property in the trust very carefully. Use good judgment and common sense. As a fiduciary, you must be even more careful with the trust’s money than you might be with your own. If neither co-trustee has financial or legal experience, pairing one of them with a professional co-trustee may be the smarter path.

Third, think about the long term. People’s lives change. A co-trustee who seems like a perfect choice today may move away, become ill, or develop conflicts of interest down the road. Your trust document should include clear provisions for what happens if a co-trustee needs to be replaced. Under O.C.G.A. § 53-12-201, a trustee appointed as a successor trustee shall have all the authority of the original trustee. Good planning accounts for these transitions in advance.

Trusts that hold unique assets, like those set up for pet guardianships, require trustees who understand both the financial and personal dimensions of the trust’s purpose. The same is true for wills and trusts that involve blended families or minor children. The team at Slowik Estate Planning works with Atlanta families every day to build trust structures that actually work in the real world, not just on paper. We encourage you to reach out to our office to discuss your specific situation before you finalize any trustee decisions.

FAQs About Co-Trustees in Atlanta, Georgia

Can co-trustees in Georgia make decisions independently of each other?

Generally, no. Under Georgia law, co-trustees must act unanimously on most trust decisions. This is the default rule under the Revised Georgia Trust Code of 2010 at O.C.G.A. § 53-12-204. However, your trust document can be drafted to allow majority voting if you have three or more co-trustees, or to divide specific responsibilities between co-trustees. There is one exception built into the law: if a co-trustee is temporarily unable to act due to illness or other incapacity, the remaining co-trustees may act alone when necessary to protect the trust. Working with an attorney to draft these provisions clearly can prevent a lot of problems later.

What happens if my co-trustees cannot agree on a decision?

If co-trustees reach a deadlock and cannot resolve it on their own, the matter may need to go to a Georgia court for resolution. This can be expensive and time-consuming, and it can delay important trust actions like making distributions to beneficiaries or selling trust property. The best way to avoid this outcome is to choose co-trustees who communicate well and to draft your trust document with clear tie-breaking mechanisms. Slowik Estate Planning can help you build those safeguards into your trust from the beginning.

Can one co-trustee be held liable for the actions of the other?

Yes. Under O.C.G.A. § 53-12-300 through § 53-12-308, a co-trustee who knows about a breach of trust by their fellow trustee and fails to take action can face personal liability. Georgia law makes clear that no trust provision can protect a trustee from liability for a breach committed in bad faith or with reckless indifference to the beneficiaries’ interests. This means every co-trustee must stay informed and engaged, even if the other co-trustee is handling day-to-day management. Ignorance is not a defense.

Can I remove a co-trustee in Georgia if things are not working out?

Yes, but the process depends on what your trust document says and the circumstances involved. Under O.C.G.A. § 53-12-220, a trustee can be removed by the court for cause, such as a breach of trust, incapacity, or a serious conflict of interest. Some trust documents also include built-in removal provisions that allow the beneficiaries or a trust protector to remove a co-trustee without going to court. Planning for this possibility in advance is much easier than dealing with it after a problem arises. Slowik Estate Planning can help you include appropriate removal provisions in your trust document.

Is it a good idea to name an institutional co-trustee alongside a family member?

For many Atlanta families, pairing a family member with an institutional co-trustee, like a bank trust department, is an excellent strategy. The family member brings personal knowledge of the beneficiaries and the family’s values, while the institution brings professional investment management and administrative experience. This combination can reduce the risk of poor financial decisions and provide continuity if the family co-trustee is unable to serve. The trade-off is cost, since institutional trustees charge fees for their services. Whether this arrangement makes sense depends on the size of your trust and the complexity of your assets. Contact Slowik Estate Planning in Atlanta, Georgia, to discuss whether this structure fits your needs.

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