Planning for the future includes creating an estate plan that allows a Maryland adult to control what happens to wealth and assets after passing. This typically includes drafting a will, but there are other tools that allow one to accomplish specific things with his or her assets. One beneficial tool is a trust, and this requires the appointment of a person or party to act as a trustee. When making this appointment, careful consideration is critical.
The appointment of the trustee is an important designation as this individual will oversee the process of distributing assets from the trust. Choosing well is crucial, and it is beneficial to think long-term when making this choice. Important considerations may include:
- State laws could affect how a trustee can handle his or her responsibilities. It may be important to think about local jurisdictions when choosing a trustee.
- There are times when it is best to name a corporate entity as a trustee instead of an individual. This may provide stability and long-term security.
- A trustee should be someone who is capable of meeting trust obligations and will take the responsibility of trust management seriously.
A trustee should be an individual or party that will be dependable and responsible for years into the future. A poor choice can result in complications with trust assets.
Creating a meaningful plan
An estate plan allows one to decide what happens to wealth and assets, even creating trusts to accomplish specific goals. This may include charitable giving or the care of a special needs loved one. When establishing a trust, a Maryland individual will be wise to think carefully about who should act as trustee.