Coordinating your estate plan can be a complex process. You want loved ones to enjoy the assets of your estate after you pass away, but there are some aspects of estate planning that require significant consideration.
In many situations, a trust can help you provide for loved ones who may not be ready to manage significant assets on their own. Utilizing a trust also helps to ensure that beneficiaries will use the assets according to your wishes. A trust requires the oversight of a qualified trustee who will successfully manage the assets for your loved ones.
Here are a few tips for choosing a trustee.
You may be inclined to choose a friend or family member as the trustee who provides oversight of your trust; however, you should consider how that individual handles personal finances before making that decision. A trustee should be trustworthy as well as financially responsible in their own matters.
Your trustee will help a beneficiary manage trust assets and make critical decisions. Someone struggling with their own budget may be unable to adequately fulfill the duties of a trustee.
No drama here
Another challenge when choosing a trustee is selecting someone who can make objective decisions. Most trust relationships come easily because there is agreement between the trustee and beneficiaries. Others may face challenges when the trustee knows what is best, but a beneficiary creates conflict between family members. Ideally, you want someone who can support your wishes while avoiding family drama.
When choosing a trustee, situations may exist which require you to consider using a trust company or other skilled professional who will remain objective when making decisions. As you create your estate plan, talk to an experienced legal professional about what to consider when choosing a trustee.