Q: Can my daughter, who is an American citizen but lives in Sweden, be administrator of my revocable trust (which is small and mostly insurance proceeds)? --Wanda, Rocklin, CA
A: You can name a non-US resident as the successor trustee of your revocable trust. From a practical perspective, though, it is generally better to name a US-resident (and a California resident, if possible) as your successor trustee.
During your lifetime, if you are unable to act as your own trustee, then your successor would step in to manage the assets held in the trust. It may be difficult for your daughter to assume this role if she is living in Sweden.
After your death, the trustee is responsible for administering the trust. Even if your trust provides that all of the assets are to be distributed immediately to your beneficiaries, there is still some administrative work that needs to be done.
For example, California requires that notifications be sent to all of your heirs and beneficiaries, and if there is real property in your trust, there are documents that need to be filed with the county. Also, the trustee generally coordinates the disposition of your personal property and household effects. While it is possible for a non-resident trustee to handle many of these matters, it would likely be much easier for the trustee if he or she is local.
Having said all this, I can imagine facts and circumstances that would lead you to decide to name your daughter as your successor trustee, even if she lives in Sweden.
For example, if your trust is fully funded so that no court proceeding is required at the time of your death (and thus the executor will have a minor role in your trust administration); if your assets consist primarily of accounts and not real property; if your daughter is your sole or primary beneficiary; if you don't have other good choices for the job of trustee; then naming your daughter may be the best choice.
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