3 minutes reading time (659 words)

The Importance of Choosing the Right Trustee


More and more people are realizing the importance of setting up a trust for their estate. Having a trust in place insures that your wishes for your estate are carried out on your terms if you become unable to care for yourself or pass away. It also prevents your assets from going into probate after your death and saves a huge headache for your heirs. While having a trust in place is very important it is also very important who you name as the trustee.

There are a few different options when selecting a trustee. The most common scenario is that a married couple sets up a living trust where they are both listed as trustees and they list a child or family member to become the successor trustee. In the case that one spouse passes before the other the living spouse will become the sole trustee until they are incapable of caring for themselves or they pass away. At that point the successor trustee in charge of handling the estate duties.

The responsibilities of managing an estate are many and can be daunting to someone who lacks experience in these types of situations. When choosing your trustee you should choose someone who is (a) willing to dedicate the time and energy to run the estate (b) responsible and possesses good judgement and (c) someone who can be objective when following the instructions set up in the trust. It may seem like the natural choice to choose your child or a family member to act in this role but it may not be the best choice depending on the complexity of your estate and their abilities.

In the case where a person is unsure of who to name as a trustee an estate attorney will usually suggest that a bank be set up as the trustee to carry out the responsibilities of the trust. This is called a corporate trustee. This seems like a good idea because a bank has experience with handling trusts and wealth management. But this is not always the best choice either. When the duties of a trustee are needed the bank will take over the trust, move your assets from whatever accounts you have them set up in now to investments of their choosing and will take over the estate. They will follow the instructions in the estate as wished but it may leave your family without the feeling of a personal connection since they may not have worked with that bank before or know the person handling the assets.

Did you know that you have another option that will help ease the burden on your loved ones by running the estate themselves? There is something called an administrative trustee. In a lot of cases we see a child take over the duties of the estate and get overwhelmed with the process. They may be doing it free of charge but in the long run trying to take care of everything on their own ends up costing more financially and emotionally. An administrative trustee is a company that is set up to handle all of the time consuming paperwork and filing responsibilities of the estate. They do not make any decisions as far as wealth management is concerned. That is still the responsibility of the trustee and their financial advisor. Yes, there is a fee to have an administrative trustee but it can outweigh the stress and headaches that come along with trying to do everything yourself.

The best thing to do is have an open discussion with your family, estate attorney and financial advisor. Make your goals and wishes for the estate clear and set up the trustee that you think will be the best fit for your personal situation. By doing this you will have the peace of mind knowing that your wishes will be followed and that your family will be taken care of in the way that you want.

Mobile Banking Security Tips
Top Reasons to Set Up a Living Trust

Related Posts

By accepting you will be accessing a service provided by a third-party external to https://assetplanninginc.com/

Search Blogs Module

Wait a minute, while we are rendering the calendar
EEChecklist-Kits.pdf stockpilingchecklist.pdf earnings fallout identity theft asset Planning drive /usb years settlement options phone companies fees Independence Day toilet paper coronavirus Notary Public donation items credit cards April 18 2017. Puerto Rico Part D premiums . ice cream event credit card company email notifications home break-ins donation counts assets October 1 2020. spam phone president Trump Medicare Advantage tax returns media accounts 2018 IRA contributions trust check lists information Facebook Medicare COVID -19 virus car loans pets Medicare Part B privacy settings 20 year anniversary Roth IRA FSA debt CA FTB Medicare Part B premiums wells Fargo estate planning direction interest California Lions Friends July 3 rd Affordable Care Act interest rates hurricane Dorian home security news coverage tax season pet donation drive Healthcare VOIP landline phones payments executive order paper records team members Medicare question Supplemental Security Income TD Ameritrade illiegal robocallers ID card earthquake app February 14 notary services Mobile Banking Security Tips retirement plans documents June 29 D premiums Social Security Administration Ice Cream Social health care costs July weekend cell phone service provider market turmoil company Part B operations manager padlock paperwork clutter card reader pet industry cell phones Expired medications privacy notices tax records fun facts Retirement Contribution Limits web address water … health care services gap insurance offering insurance house sitter pet FEMA website life saver consumer spending family members records flash drive phone checklists integral member home emergency preparedness kits spring cleaning people medications cell phone provider vision screening credit card fraud home mortgages summer Treasury Department CFP ® phishing sites student loans relief efforts stimulus package IRA accounts pet supplies Amazon Victor Dergunov 2017 IRA contributions IRS deadline fun atmosphere clone counterfeits investment statements 23 andme April 15 credit freeze policy “ skimmer ”. Charles Schwab Medicare plan IRS business hours cell phone carriers Federal Trade Commission website clients show support rescue organizations Flexible Spending Account scams information Orange County Superior Court Kraig Mathias CARES Act retirement planning Financial Planning Magazine tax deadline 70 1/2. 900 number birth certificates phishing scams Two-Step Verification insurance policy parking spots September 8 vacation Auto insurance CERTIFIED FINANCIAL PLANNER exam Economic Security blog post home emergency kit Facebook profile Joey Gonzales insurance policies cell phone carriers offer driver license Kiplinger Letter Labor Day https ://seekingalpha emergency kits estate planning Fox News story prescription eyeglasses Wells Fargo customers tax deadlines trustee client portal Legal robocalls 401K disaster areas retirement accounts 2017 TD Ameritrade National LINC Conference account numbers stock pile spread estate Shred paperwork markets https :// home Coronavirus Aid identity thieves tax filing deadlines self-help topics borrowing money increase 2017 Equifax breach bottom line retirement breach text messages July 4 cell phone SIM swap scam Open House Wells Fargo employees non-prescripstion sunglasses Erin Nelsen chip-enabled EMV cards memorial Day weekend credit monitoring service April 11 Orange County July 6 items banking holidays approach January 10 September 30 2020. emergency folder app partner /owner portal ice cream contribution limit Brexit vote DNA test kits money official certification 4 pm -8pm Social Security credit score opt-out Asset Planning National Ice Cream month emergency kit jury duty clients Open Enrollment September 9