A Trust Is Only as Strong as Its Trustee: How to Choose Wisely in Nebraska

You can have the most beautifully written, airtight trust document out there… and still end up with an absolute mess if the wrong person is in charge of it.

A trust is only as strong as its trustee. Period.

Choosing who is going to carry out your wishes is one of the most important decisions in the entire estate planning process—but it’s also one people tend to breeze past, thinking, “Oh, I’ll just name my oldest child,” or “My sister is good with paperwork, she can do it.”

That’s where things can go sideways. Fast.

Being a trustee is not an honorary title. It’s a legal role with significant responsibility. Under Nebraska law, trustees are fiduciaries, which means they are held to some of the highest standards of care and loyalty. They are legally obligated to act in the best interests of the beneficiaries, follow the trust’s terms, and manage the trust’s assets prudently. (See Nebraska Uniform Trust Code, Neb. Rev. Stat. §§ 30-3801 et seq.)

A trustee’s core responsibility includes the “Duty of Loyalty” (Neb. Rev. Stat. § 30-3866)—they must act solely for the benefit of the trust’s beneficiaries and steer clear of any personal conflicts of interest. This isn’t about keeping the peace in the family or trying to “be fair” in an informal way. It’s about following the legal and fiduciary duties required of the role.

And it’s not a short-term gig, either. Depending on what the trust is designed to do, administering it could take years—not just a few months after the funeral.

So what actually makes someone a good trustee? It’s not about who’s closest to you, or who “deserves” to be named. It’s about whether they can handle the job with the care, skill, and objectivity it requires.

They need to understand finances. They don’t have to be an accountant or an investment advisor, but they DO need to manage money responsibly and understand how investments, taxes, and distributions work. Nebraska law requires trustees to administer the trust prudently, under what’s called the “prudent investor rule” (Neb. Rev. Stat. §§ 30-3883 to 30-3889). They need to be able to apply good judgment and, when necessary, seek professional advice to do the job right.

They need to be neutral. The “Duty of Loyalty” comes into play here. A trustee cannot favor one beneficiary over another, cannot let family dynamics interfere with decision-making, and must avoid conflicts of interest. If your trustee is likely to get caught up in old sibling rivalries or play favorites, that’s a recipe for litigation.

They need follow-through. Administering a trust isn’t a one-and-done task. Nebraska law requires trustees to keep qualified beneficiaries reasonably informed (Neb. Rev. Stat. § 30-3878). That means providing a copy of the trust document upon request, notifying beneficiaries when they accept the role, and providing annual reports on the trust’s finances—including assets, liabilities, receipts, and disbursements. Record-keeping is not optional.

For clarity, “qualified beneficiaries” under Nebraska law generally includes current beneficiaries who are receiving distributions, as well as those who would take if the current interests were to terminate. In other words, not everyone who might someday benefit from the trust, but those with a current or clearly foreseeable interest.

And finally, they need good judgment. No trust document can anticipate every curveball life will throw. A good trustee knows when to stick closely to the terms of the trust and when to seek legal or financial advice. The “prudent administration” standard (Neb. Rev. Stat. § 30-3867) makes it clear that sound decision-making—and knowing when to ask for help—is part of the job.

In some cases, an individual trustee may also be required to obtain a bond, depending on what the trust document says or what the court requires. This is a layer of protection for the beneficiaries in case of mismanagement or fraud. Professional trustees are typically bonded or otherwise regulated, which is one reason why many people choose them for complex or high-value trusts.

And let’s not forget—the trust document itself matters too. A well-drafted trust is the trustee’s roadmap. It should clearly outline powers, responsibilities, and successor provisions. No trustee, no matter how skilled, can do a good job with a poorly written or vague trust.

Sometimes the best trustee isn’t a family member at all. Sometimes hiring a professional trustee—or pairing a trusted family member with a professional co-trustee—is the smartest, most practical way to protect your legacy and your loved ones. This isn’t about hurt feelings. It’s about making sure your wishes are honored and your family isn’t left to deal with unnecessary stress and conflict.

Estate planning isn’t just about filling in blanks or checking off boxes. It’s strategic work. And choosing the right trustee? That’s one of the most strategic choices you’ll make. Give it the thoughtful attention it deserves. Your future self—and your family—will be glad you did. If you need assistance with creating this, contact me at 402-259-0059 or zach@zandersonlaw.com.