A key decision that anyone setting up a trust must make is to decide who they’re going to appoint to the role of trustee. There are a few attributes that you should look for any potential trustee candidate to have before appointing them to that role.
First, the individual that you appoint as your trustee needs to be honest and trustworthy. They should be comfortable making decisions that are in the best interest of the trust’s beneficiaries — not their own personal interests.
The person that you choose for this role should be someone who doesn’t make rash decisions, but instead researches and makes reasoned ones. They should be someone who has no problem calling on outside consultants to guide them when they need help. They should be someone who spends money conservatively, as well.
You may find it best to appoint several individuals as co-trustees instead of a single person to this role. It’s particularly important that you do this if you have substantial assets.
A benefit to appointing more than one trustee is that it allows more than one person to make a decision. This can result in less money being spent and better protection for your assets.
If you do appoint more than one trustee, then you avoid selecting family members for this role. It may cause in-fighting and result in expensive litigation if you do.
There’s always the option of appointing a financial planner or a bank to the role of trustee. You may want to avoid doing this though as they may not outlive the trust. You may also have to compensate them more than you would a non-corporate entity.
The person that you appoint to the trustee role should be young and in good health. You’ll want to feel confident that they can carry out their duties for many years to come. You should also regularly review your trust documents to make sure that you’re still comfortable with your original choice of an appointee.
Individuals in Frederick set up trusts for many reasons. Some do so to protect their loved ones’ eligibility for government benefits. Others do so to ensure that their assets or heirs don’t get overtaxed. Selecting a trustee that can protect you and your loved one’s interests into the future requires careful consideration and forward-thinking. A wills and trusts attorney can help you sit down to work on your estate plan.