How to Choose the Right Trustee When Estate Planning
When creating a trust, choosing the right trustee is a critical part of the process. Consult with The Powell Law Firm for tips on choosing the right trustee for your estate.
When creating an estate plan, there is a lot to think about. For example, not only will you need to make decisions about how your assets and property should be distributed, but you will also need to name an executor/administrator of your estate and, if you are holding assets in a trust, you will need to name a trustee.
What is a Trustee?
The trustee is the party who is responsible for distributing and managing assets held in a trust per the terms of the trust. The trustee has a fiduciary duty. Common tasks of a trustee include filing taxes for the trust, distributing assets from the trust, and managing assets held in a trust.
Trustees: Common Choices
When creating a trust, most people choose a close family member to be the trustee. Often, a person will select a spouse or a child as the trustee. While this can have advantages, including that you are choosing a trusted loved one to manage a very important arrangement, naming a spouse or a child as a trustee is not always the best option. This is because being a trustee is a legally intensive process that has many duties under state law. What is more, if the trustee is also a beneficiary, this may create a problematic conflict of interests that makes it difficult for the trustee to comply with the terms of the trust.
Things to Consider When Selecting a Trustee
When thinking about whom to name as a trustee, important things to consider are:
- Does the potential trustee have any conflicts of interests in managing the trust? Can they be trusted to act impartially and to carry out the terms of the trust?
- Is the potential trustee responsible, financially savvy, and someone who exercises good judgment?
- Will the trustee be able to work peacefully with the beneficiaries of the trust and any other interested parties?
- Will management of the trust have complicated legal or tax consequences that would be best managed by a professional?
- If you hire an outside professional to manage the trust, how much of the trust’s assets will be spent on these costs and other fees?
Consult with a Pearland Estate Planning Attorney to Learn More
Creating a trust is a big decision, and one that should not be engaged in without the counsel of a professional. An experienced estate planning attorney will be able to help you form a trust, as well as answer your many questions about the different types of trusts, the advantages of trusts, assets that can be held in a trust, and how to select a trustee to manage the assets in a trust.
At the law office of The Powell Law Firm, our Pearland, TX estate planning attorney knows how important creating a sound estate plan is for you and your family. For the legal counsel and support you need, please call our lawyer directly today. We can answer even your toughest questions and work with you to create a customized plan that serves your best interests.
