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
  776 Hits
776 Hits

Search Blogs Module

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