Asset Planning, Inc Blog

The latest from the team.

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.

Continue reading
  897 Hits
897 Hits

Search Blogs Module

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