What Should You Consider When Naming a Trustee?

Finding a Responsible Trustee is a Critical Part of the Trust Formation Process

Creating a trust may be both a sound financial decision and an effective way to provide for your loved ones and plan for your estate. Creating a trust, and naming a trustee, is a big decision; whomever you name will be responsible for managing your trust and distributing assets held within the trust. At The Powell Law Firm, we have helped numerous clients create and manage trustees over the years. The following is our list of top things to consider when naming a trustee:

Characteristics of the Potential Trustee

One of the first things that you should consider if you have a few trustees in mind is the characteristics of these trustees. Managing a trust is a big responsibility. You want to make sure that your trustee is:

• Someone with whom you maintain a close relationship and trust to act in your best interests;

• Responsible and able to prioritize management of the trust;

• Reliable; the last thing that you want to have to worry about is your trustee neglecting his or her duties;

• Available to communicate with you regarding the trust; and

• Experienced and intelligent; while you may not need to hire a lawyer or financial professional, choosing someone who is good with money management and generally smart can prove helpful.

Remember that the trustee, whomever you choose, will be responsible for many important tasks. Trustees must be able to pay attention to details, keep thorough records, be able to communicate with other professionals (such as tax specialists), and manage investments.

Having More Than One Trustee

Another thing to consider when thinking about who will be the trustee for your trust is whether or not you want to name more than one trustee. This may be the case if you are having difficulty finding a single individual whom you believe can handle the management of the trust. However, if you are naming co-trustees, you need to be confident in their ability to work together. As many advantages as naming two trustees can have, there are disadvantages, too.

Hiring a Professional as Your Trustee

Another popular option when naming a trustee is to hire a professional, such as a corporate trustee or a lawyer. This might be a wise idea if you:

• Do not have confidence in friends or family to manage a trust;

• Are worried about the future; naming a trustee from your personal life also means naming a successor, which can complicate the process; or

• Simply want additional peace of mind; you can trust a professional to competently manage your trust.

Have More Questions About Trusts?

If you have more questions about the formation of trusts in Texas, our Texas estate planning attorney at The Powell Law Firm can help. To schedule your initial consultation, please call our law office directly or send us a message now. You can also stop by our office located on Miller Ranch Road in Pearland at your convenience.