An estate plan can be excellent – but a poor choice of a trustee could ruin it all.
The task of making sure the assets of a trust are handled well with appropriate investment and distribution to beneficiaries is the responsibility of a trustee. However, if the trustee does an irresponsible or poor job then the intention of the trust can be hindered and the assets can be diminished or disappear.
Thus, it is especially important that you make a wise decision when deciding who to appoint to any trust that you create.
The success of your estate plan depends on it. Recently the Wills, Trusts & Estates Prof Blog offered some tips in an article entitled “A Few Tips To Keep In Mind When Choosing A Trustee.”
The tips include:
- Trustworthiness – The most important thing is to chose a trustee who is worthy of the name. Pick someone who can be trusted not to use the trust assets for his or her own benefit.
- Good Judgment – Trustees often have to make judgment calls about investments and distributions. It is important to pick someone who can make those calls appropriately.
- Availability – Choose someone who will be able to handle the trust for an extended period of time. When trustees have to be replaced it can often lead to difficulties with investments and beneficiaries as the new trustee gets up to speed.
- Sound Money Management – While you do not necessarily need a financial expert to be your trustee you should pick someone who has a history of sound financial decisions.
When it comes time to choose an appropriate trustee, an estate planning attorney could be helpful in coming to a decision.
Reference: Wills, Trusts & Estates Prof Blog (Nov. 10, 2015) “A Few Tips To Keep In Mind When Choosing A Trustee.”
Related articles: Revocable Living Trusts: Everything You Need to Know
