Naming Co-Trustees in Canada — Sharing Control of a Trust
Naming two or three trustees feels safer than naming one — more eyes on the money, no single point of failure. It can be, but it introduces a problem people rarely anticipate: trustees who must agree, and sometimes can't. A trust with co-trustees who deadlock is worse off than a trust with one capable trustee, because nothing can happen until they resolve it, possibly in court. Shared control is a real benefit, but only if the trust deed is written to make decisions actually get made.
This guide covers how co-trustees work and how to set them up. It is general information, not advice.
Co-trustees usually must act together
The default rule catches people out: unless the trust deed says otherwise, co-trustees generally must act unanimously in most Canadian provinces.[1] One trustee can effectively block a decision the others want to make. That unanimity is exactly the checks-and-balances some settlors want — and exactly the deadlock risk others overlook. The default is not universal, though — Alberta's modernized Trustee Act flips it for larger trustee panels, letting a majority of three or more trustees act even over one dissenter.[4] Either way, the decision rules in the deed are what determine whether co-trustees are a strength or a liability, and confirming the applicable provincial default with a lawyer is worthwhile before relying on it.
Why name co-trustees
The case for more than one trustee is real:
- Checks and balances — no single person controls the trust unsupervised.
- Combined expertise — a common pairing is a family member who knows the beneficiaries with a professional or corporate trustee who handles investments and administration.
- Continuity — the trust does not hinge on one person staying able and willing.
The downsides
The costs are equally real. Deadlock is the headline risk — if co-trustees must agree and cannot, the trust stalls, and breaking the impasse may require a court application. More trustees also mean slower decisions and more room for personality conflict, especially among family members. Shared control trades single-person efficiency for coordination overhead.
Avoiding deadlock
Design around it in the deed:
- Provide for majority voting rather than unanimity, where appropriate.
- Use an odd number of trustees, or name a tiebreaker for specific decisions.
- Include a clean removal-and-replacement mechanism so one obstructive or incapacitated co-trustee cannot paralyze the trust — see removing a trustee.
A common, workable structure is a family member plus a trust company, with the deed clear on how they share duties and resolve disagreements.
How many
There is no fixed limit, but each added trustee increases coordination cost and deadlock risk. Two or three is common; large numbers become unwieldy. Match the count to the trust's complexity and your need for oversight, and always nail down the decision rules and succession.
What we focus on at It's Simple Will
The Will Creator helps you name executors — including co-executors and alternates — with the same care co-trustees deserve. Where your plan uses a trust with more than one trustee, the deed's decision rules are the detail that makes it work, and that is lawyer territory. For choosing trustees generally, see naming trustees in Canada.
Related guides
Citations & sources
- [1]Trustee Act, RSO 1990, c T.23 — general trustee powers and duties — Government of Ontario
- [2]Income Tax Act, RSC 1985, c 1 (5th Supp) — trusts — Justice Laws Website, Government of Canada
- [3]Administering estates (Ontario) — fiduciary duties — Government of Ontario
- [4]Trustee Act, SA 2022, c T-8.1 (Alberta) — majority decision-making for three or more trustees — CanLII
Frequently asked questions
Do co-trustees have to agree on everything?
Usually, yes. Unless the trust deed provides for majority decisions, co-trustees are generally required to act unanimously, so one trustee can effectively block a decision. That is a feature when you want checks and balances, and a bug when it produces deadlock. The deed's decision rules are therefore critical.
Why name more than one trustee?
For checks and balances, combined expertise, and continuity. A common pairing is a family member who knows the beneficiaries with a professional or corporate trustee who handles investments and administration. Multiple trustees also mean the trust does not depend on a single person remaining able and willing to serve.
What is the main downside?
Deadlock and friction. If co-trustees must agree and they cannot, the trust can stall, and resolving it may require a court application. More trustees also mean slower decisions and more potential for personality conflict, especially among family members. The convenience of shared control is offset by the cost of coordination.
How do I avoid co-trustee deadlock?
Set clear decision rules in the trust deed — for example, majority voting rather than unanimity, an odd number of trustees, or a designated tiebreaker for specific decisions. Also include a clean mechanism to remove and replace a trustee, so a single obstructive or incapable co-trustee does not paralyze the trust.
Can I mix a family member and a trust company?
Yes, and it is a popular structure. The family co-trustee brings knowledge of the beneficiaries and a personal touch; the corporate co-trustee brings impartiality, investment expertise, and durability. The deed should be clear about how they share duties and resolve disagreements so the pairing works in practice.
How many co-trustees is too many?
There is no fixed limit, but each additional trustee adds coordination cost and deadlock risk. Two or three is common; large numbers become unwieldy. Match the number to the trust's complexity and the need for checks and balances, and always ensure the decision rules and succession are clear.