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Episode 039: Selecting the Right Trustee with Attorney Mark Harder

August 15, 2018

It’s been said that choosing a trustee is one of the most important decisions you will ever make. Let that settle in for a minute.

Why is this one decision so important? How do you choose the right person? What qualities should you look for in a trustee? Should it be a family member or someone you know in a more professional capacity?  This is a big topic and we had so many questions.

For answers, we turned to Mark Harder, an attorney with Warner Norcross + Judd. Mark is chair of the firm’s Private Client and Family Office Group. He has dedicated his career to helping high net worth families navigate big decisions, just like this one. In this episode, Mark answers our questions about choosing the right trustee and provides an incredible amount of excellent information and resources.

Reach Mark at Warner Norcross + Judd and download his firm’s bonus resource, Selecting a Trustee.

Topics discussed in this episode:

  • Meet Mark (2:06)
  • Why is choosing a trustee such an important decision? (4:41)
  • What qualities should you look for in a good trustee? (8:18)
  • What are some common issues that lead to legal disputes? (17:08)
  • Who is the Trustee’s “client”? (20:13)
  • What are the pros and cons of selecting a family member to be a trustee? (22:28)
  • Do you need succession planning for a trustee? (29:05)
  • If not family, who should you choose to be a trustee? (30:12)
  • What are some best practices for trustee selection? (35:57)
  • Recommended resources (46:30)
  • How to contact Mark (48:18)
  • Bonus questions (48:50)

Notable & Quotable:

A trustee has control of the assets of the trust. They hold legal title of the property and are making decisions about how to invest and distribute the assets. —Mark Harder #successfulgenerations


The #1 quality of a good trustee is to know what they don’t know, and to go out and seek good advice when it’s needed. —Mark Harder #successfulgenerations


You need to have a succession mechanism for trustees in case someone resigns, dies or becomes incapacitated. —Mark Harder #successfulgenerations


Trustee options outside of the family can include: an institutional trustee (i.e. bank trust department), a close friend or business associate, a professional advisor, or a private family trust company (assets $250M+). —Mark Harder #successfulgenerations


I drafted a trust once in which we put the trustee up for reappointment every five years. This allowed the family to evaluate if the trustee was meeting their needs on an ongoing basis. —Mark Harder #successfulgenerations


A well thought out trust document will include a good governance system for the appointment of successor trustees. —Mark Harder #successfulgenerations


Resources mentioned in this episode:

Mark Harder

Warner Norcross + Judd’s Estate Planning Newsletter

WNJ Resource: Selecting a Trustee

Family Office Exchange

SG Reading List: Family Trusts: A Guide for Beneficiaries, Trustees, Trust Protectors, and Trust Creators by Hartley Goldstone, Jame E. Hughes and Keith Whitaker (Listen to the end of the episode for a chance to win a copy of this book!)

Guest Bio: Mark Harder

Mark Harder, chair of the firm’s Private Client and Family Office Group, has dedicated his practice to counseling and representing high net worth individuals, families, family businesses and their owners, and closely held businesses. He provides his clients with estate planning and estate settlement services, advises on family business succession planning matters, represents family and closely held businesses in their day to day business matters, and serves as an adviser and counselor on legal matters to businesses, individuals, and their families.

Mark chaired the Probate and Estate Planning Section of the State Bar of Michigan and also the State Bar of Michigan committee that spent more than five years writing the Michigan Trust Code, which governs how trusts are established and administered in the state. He is a Fellow of the American College of Trust and Estate Counsel.

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Want more of Successful Generations? Check out our other episodes: 

Episode 038: Standing Up in a Male-Dominated Industry with René Banglesdorf
Replay: Answering the Question I’m Always Asked About Philanthropy
Replay: How My Parents Raised Us to Be Business Smart with Paige Cornetet
Episode 037: Making Your Mark on the Family Business with Cara Mackay
Episode 036: Financial Literacy, Leadership and Entrepreneurship for Teens with Whitney Webb
Bonus Episode: Power20—My Reflect and Connect Challenge
Episode 035: Great Governance for Your Investment Committee with Becky Wood
Episode 034: Trapped in the Family Business with Dr. Michael Klein, Part 2
Episode 033: Trapped in the Family Business with Dr. Michael Klein, Part 1
Episode 032: Spendthrift or Tightwad with Dr. Scott Rick
Episode 031: Impact Investing with Jennifer Oertel
Episode 030: Holistic Weight Management with Cynthia Damaskos
Episode 029: Giving Back Through Giving Circles with Dr. Jason Franklin
Episode 028: The Family Business Podcast with Russ Haworth
Episode 027: The Power of Mindset with Dr. Nancy Jonker
Episode 026: Reflections from Four Decades in Philanthropy with Rob Collier
Episode 025: Power20—10 Ways to Set Your NextGen Up for Success in the Family Enterprise
Episode 024: Pump it Up! Strength Training and Leadership Development
Episode 023: Leadership Development and Agility with Greg McCann
Episode 022: Getting Started in Philanthropy with Colleen Mitchell
Episode 021: Taking Over the Family Business with Mitchell Kaneff
Episode 020: Women and Wealth w/ Adrienne Penta
Episode 019: The Allyn Family 2.0, Part 2
Episode 018: The Welch Allyn Family Business Story with Eric Allyn (4th Gen), Part 1
Episode 017: Achieving Your Goals through MasterMind and Peer Groups
Episode 016: Reframing Limiting Beliefs with Ellie Frey Zagel
Episode 015: Beyond the Piggy Bank with Father, Author, and Entrepreneur Clint Greenleaf
Episode 014: More Awareness and Less Stress through Yoga
Episode 013: Raising Children to be Amazing Business Owners with Paige Cornetet
Episode 012: Generous Genes with Susan Crites Price
Episode 011: Digging into the Family Business Landscape with Daniel Van Der Vliet
Episode 010: 10 Things My Family Did to Engage us in Family Philanthropy
Episode 009: Stress Management and Holistic Health with Cynthia Damaskos
Episode 008: Family, Fights and Ferry Tales with Chris Shepler
Episode 007: Raising Financially Responsible Kids Through the Holidays (and Beyond)
Episode 006: Join the Philanthropic Revolution with Michael Moody
Episode 005: Estate Planning 101 aka Estate Planning is Not Optional with Susan Gell Meyers 
Episode 004: Ginny Esposito – Engaging your Family in Family Philanthropy
Episode 003: Leadership, Wellness, and Concierge Medicine with Dr. Bill Baer
Episode 002: Douglas D Box, Texas Patriarch – A Legacy Lost
Episode 001: About Your Host Ellie Frey Zagel

Learn more about Successful Generations:

FB: @SuccessfulGenerations
Twitter: @EllieFreyZagel
Email: ellie@successfulgenerations.com
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Have a topic suggestion?

If you are the next generation of family business, philanthropy and wealth, and have a topic you think we should discuss, let us know at Ellie@successfulgenerations.com.

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Ellie Frey Zagel

Ellie Frey Zagel is 3rd Generation, Vice Chair and Trustee of her family’s foundation the Frey Foundation based in Grand Rapids, MI. For nearly a decade she has been deeply involved in working with the next generation of family business, family philanthropy, and family wealth, first as Director of the Family Business Alliance and now as President of Successful Generations, a company she recently founded.

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