The attorneys of SinclairProsser Law will assist you with all of the steps that are involved in creating a trust. We can also assist you with understanding the role of a trustee so you can select a person you can count on.
Let’s consider some of the key questions you should ask when you are selecting a trustee.
Is the Trustee Willing to Fulfill This Role?
Acting as a trustee can be a big responsibility. A trustee may need to take responsibility for managing assets if something happens to the trustor. A trustee could also be responsible for overseeing the trust administration process after a death has occurred.
Is the Trustee Able to Manage Assets?
Often, people have valuable assets that can be complicated to manage. If these assets are put into a trust, the trustee will have an obligation to manage them if something happens to the trustor. It’s important to ensure the trustee has the knowledge and ability to manage trust assets effectively and protect their value.
Can the Trustee Take Care of the Technical Details of Trust Administration?
The trust administration process can also be very complicated. Notice must be provided to interested parties and the trust administrator will have the responsibility of facilitating the formal transfer of assets. There could be tax forms that must be filed. There may need to be titles and deeds transferred and other official legal paperwork completed. There could even be serious problems that must be addressed, such as someone deciding to contest the trust.
Do you Trust the Trustee?
Finally, you want to ensure that the person who you select to serve as the trustee is someone who you feel is reliable and actually will act in your best interests and the best interests of your heirs or beneficiaries. A trustee has control over assets and a lot of responsibility, and you want to ensure that the trustee will not put his or her own needs first or enrich himself at the expense of the trust beneficiaries.
There is recourse if a trustee acts inappropriately. Because the trustee has a fiduciary duty, a trustee who fails to fulfill this obligation through negligence or through intentional wrongdoing could be sued for breach of fiduciary duty. However, this adds costs and results in loved ones having to go to court. To spare your family the expense and headache, make sure you choose someone as a trustee who you can count on to behave with the utmost of integrity.
The attorneys of SinclairProsser Law will provide personalized help and support as you select your trustee and complete the other necessary steps involved in creating a trust.
Latest posts by Colleen Sinclair Prosser, Estate Planning Attorney (see all)
- Beneficiary Designations Aren’t a True Substitute for a Trust - April 18, 2019
- Planning for the Unexpected - March 14, 2019
- Designating a Guardian for Minor Children - February 7, 2019