How to Choose the Right Trustee for Your Trust

Choosing the right trustee for your trust is a decision that requires careful thought and due diligence. This person or entity will manage and distribute your assets according to your wishes, so it’s crucial to select someone trustworthy, responsible, and diligent.

Firstly, consider the potential trustee’s financial acumen. They must be capable of managing your assets effectively, particularly if your estate is complex. This includes understanding investments, tax laws, and estate planning strategies. If your potential trustee lacks this expertise, consider a professional trust company or bank trust department.

Next, evaluate their integrity and reliability. The trustee will have a fiduciary duty— a legal obligation to act in your best interest. You want someone who won’t be tempted to misuse the trust’s assets or make decisions that are not aligned with your intentions. Seek someone you trust implicitly, someone who is honest, responsible, and known for their ethical conduct.

Furthermore, assess their availability and commitment. Acting as a trustee can be a demanding job that requires time and attention. Ensure your chosen trustee can devote the necessary resources to manage the trust effectively. If they’re geographically distant or already have numerous commitments, it may be challenging for them to fulfill their duties.

Lastly, consider the longevity of the trustee. If your trust is designed to last for several years, or even generations, you need a trustee who can commit for the long term. For this reason, institutions often serve as trustees for long-term trusts.

Choosing the right trustee is a critical step in the process of setting up a trust. It’s worth investing the time and effort to make the right choice, as this person or institution will be instrumental in ensuring your wishes are fulfilled. Remember, the decision should be revisited regularly to ensure it still meets your needs and circumstances. You are welcome to contact us. We’re here to help!

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Timothy P. Murphy

Timothy P. Murphy is an estate planning and elder law attorney whose practice emphasizes helping people to build, preserve and pass on their wealth. He works with his clients to accomplish their goals while avoiding unnecessary court proceedings and minimizing or eliminating exposure to death taxes.

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