People establishing trusts have many important decisions to make. They have to choose the type of trust that they want to create. They also have to provide clear instructions about the distribution of resources. They also have to empower someone to act as their trustee. Even in cases where the trustor is initially the trustee, they may need to choose a successor trustee to take over their responsibilities when they become incapacitated or die.
How can people choose the right trustee to manage and distribute trust resources?
Trustees should be reliable and organized
Trust administration imposes many obligations on a trustee. As such, trustees generally need to be assertive, honest and dependable. People establishing trusts often need to think carefully about the people they know to create a list of potential candidates.
The health and availability of a trustee are important considerations. Someone who is as old or older than the trustor could die or experience medical decline that makes them incapable of fulfilling their responsibilities.
A candidate with a high-demand job or a child with special needs may not be able to dedicate their efforts and attention to trust administration. Trustees also have to willingly accept their responsibility, which makes a conversation with them before finalizing the paperwork critical.
In some cases, there is one candidate who stands out as the best option. Occasionally, people choose to appoint two or more people as co-trustees to limit the risk of a trustee becoming unavailable or misusing their authority. Some people even hire professional fiduciaries, particularly if they intend for the trust to persist for generations.
Selecting the right trustee is an important aspect of creating an effective trust. A person creating a comprehensive estate plan may need support as they make major decisions that may impact their efforts, and that’s okay.
