If you have a trust as part of your estate plan, you’ve likely chosen a friend or family member to act as trustee. But before you settle for naming the person closest to you – consider this: your trustee will oversee every aspect of your estate after you’re gone and depending upon what that estate contains, it could mean managing large amounts of cash and real estate or choosing future investments.
Do you have the right trustee in place?
The only way to know for sure is to remove the emotional aspect of choosing your trustee. Think about who is most frugal with money. Who can you trust to be fair and impartial? Who is responsible, trustworthy and fairly organized in their own personal affairs.
As much as you might love a family member, choosing someone who is always behind on their own bills or who never seems to have enough cash flow is probably not your best bet. Likewise, choosing someone who plays favorites within the family or someone who doesn’t know the difference between a bond and a mutual fund is probably not a good option either.
Of course, sometimes you’re limited in your choices but you can always go outside the family if you feel it’s necessary. The most important thing to understand is that the trustee will be responsible for ensuring that all your loved ones receive their fair share, that your assets are managed in the best possible way and that your wishes are upheld no matter what individual family members might think.
If you’ve got a loved one who fits this bill, great. If not, it might be time to look outside the family. To learn more about your options for choosing a trustee, contact our office today.