Private professional fiduciaries are typically individuals who hold themselves out as experts in serving as Trustees of trusts. These individuals may come from a variety of backgrounds, including accounting and law. To be a private professional fiduciary in California, the individual must adhere to the requirement of the Professional Fiduciaries Act as provided in California Business and Professions Code Sections 6500 to 6592. (See also California Probate Code Section 2340). 

Despite licensing requirements, private professional fiduciaries may have different levels of competence and capability, so interviewing and determining a candidate's qualifications is important. 

It's important to also note that private professional fiduciaries may not be expected to provide the full range of services that a corporate trustee would, such as investment advisory. As a result, utilizing a private professional fiduciary may require additional fees for ancillary services. That being said, a private professional fiduciary may be more flexible in terms of dealing with sensitive family dynamics involving beneficiaries as they are typically individuals who are directly dealing with the relevant parties.

You can find a list of licensed private professional fiduciaries on the website of the Professional Fiduciary Association of California (www.pfac-pro.org). 

Best practices is for a Trustor to name one or more alternate successor Trustees in case the primary one designated is unable to act or desires to resign. It's also prudent to provide for a mechanism for resigning and appointing new successor Trustees. By naming back-up Trustees, one can ensure the continuity of management of the trust assets. Without a back-up Trustee, the beneficiaries of a Trust may need to petition the court to have a successor Trustee designated, which can be a time consuming, potentially complex, and costly endeavor.

It's important for a Trustor to remember that the successor Trustee may not be able to act when the time comes. It's possible that the successor Trustee will pass away before the Trustor or be in some other situation that renders it impossible for that individual to act. By naming back-ups you can have some control over the selection of people ultimately responsible for carrying out your wishes.

As a general rule, a trust should be explicit as to how decisions should be made among Co-Trustees of a Trust. Fortunately, when a trust document is silent, the California Probate Code provides a number of default provisions to clarify how a trust should operate. 

One such rule is California Probate Code Section 15620, which provides:

Unless otherwise provided in the trust instrument, a power vested in two or more trustees may only be exercised by their unanimous action.

Where there are only 2 co-trustees, this rule makes a great deal of sense, as one would not want only 1 of the 2 co-trustee making a given decision. On the other hand, if a trust has 3 or more co-trustees, it may be preferable to have decisions be made by a majority, on the theory that over 50% of the trustees agree upon a course of action.

The default rules exist to help us avoid questions regarding interpretation of trust documents, but sometimes opting out of certain rules or defining how such decisions should be made can result in a trust being operated in a more efficient manner.

Sometimes powers conferred upon a Trustee may result in negative tax consequences if that Trustee is also the beneficiary of the trust for which he is acting. When a trustee has total discretion to distribute trust assets to himself or his dependents, the assets of the trust may be included in his estate for estate tax purposes. To avoid this, the Trustor may wish to appoint an independent Trustee or have an independent Trustee act as a Co-Trustee and limit decisions regarding distributions to just the independent Co-Trustee. 

Occasionally, sensitive family situations may also dictate that a Trustor appoint one or more "special" trustees to exercise discretion with respect to certain decisions. For example, if there are sensitive family dynamics, a corporate Trustee might decline to act unless it were given assurances that a special Trustee could be appointed for the specific purpose of dealing with those family members.

Utilizing independent or special Trustees can be helpful, but may require careful planning. For example, if the individual or corporate entity you've named for those positions is not available, then you may need to think of back-ups to ensure that the mechanism you're using is effective.