Along with other estate planning tools, trusts are an essential aspect of safeguarding your assets. In addition to wills and beneficiary designations, trusts ensure the assets and property you worked so hard for during your life go to your heirs in the manner you intended.
According to Kiplinger, choosing a trustee is a major aspect of a successful estate plan. Here are a few key points to consider when establishing a trust.
Is the person financially responsible?
Consider a potential selection’s current financial outlook. If they struggle to pay bills or frequently make poor financial decisions, they are likely to have the same problems with your estate. The trustee does not need high-level accounting knowledge, but they should exhibit responsibility in their own lives.
Are they impartial to your personal wishes?
One of the drawbacks of asking a loved one to act as a trustee is they may have strong opinions about your estate. If they feel slighted or as though another family member received more than their fair share, they are less likely to carry out your wishes. The person you choose must exhibit impartiality towards your estate planning decisions to carry them out effectively.
Does the person have time to devote to the task?
Even if the person you choose fills the criteria, consider their current responsibilities and obligations. Loved ones who work long hours while also tending to their children may not be in the best position to handle trust duties. A trustee must have enough free time to handle their administrative duties, and must also feel comfortable using their free time to assist you.
In addition to loved ones and close friends, you can also choose professionals to act as your trustee. This includes naming an attorney, financial advisor, or financial institution to oversee the dispersal of your assets after you are gone.