When you create a trust to house your assets, you must select a trustee to manage your estate if you cannot. Determining who to appoint as your trustee is a big decision and should be made based on who you trust and who would best carry out your wishes. Continue reading and speak with a skilled Middlesex County trust lawyer for legal advice today.
What is a Trustee?
A trustee is a person who manages the assets held within a trust on behalf of the beneficiaries. A trustee can be an individual person or an entity, like a bank or other company. They act as a custodian for an estate. Oftentimes, the grantor (the person who created the trust) acts as the trustee until they can’t anymore, perhaps from incapacitation or death. At this time, a successor trustee will take over after being appointed by the grantor. They will then manage the estate on behalf of the grantor and ensure their wishes are fulfilled.
What Are the Responsibilities of a Trustee?
Trustees have a fiduciary responsibility to act in the best interests of the estate. They must prioritize the beneficiaries’ interests and act impartially to carry out the grantor’s wishes. Trustees have a wide range of important duties, including the following.
- Administering the trust according to the grantor’s wishes
- Managing and protecting the trust’s assets
- Performing administrative tasks like filing tax returns, paying taxes, paying off debts, keeping detailed records, and more
- Investing and allocating assets as the grantor wanted
- Communicating with beneficiaries and distributing assets according to the instructions of the trust
A trustee has a significant duty to the grantor and beneficiaries, but the most important job is to ensure that everything they do is in the best interest of the trust.
Who Should I Appoint as My Trustee?
When you are estate planning, one of the most important decisions you will make is choosing who to appoint as the trustee of your estate. There are many options to consider, but the best decision will depend on your specific needs and circumstances.
Many people choose a close friend or relative to appoint as their trustee. This is a popular choice as there is trust and confidence in the relationship, and the individual may better understand the grantor’s intentions and wants. However, unless they have prior experience, an individual like this may lack the legal or financial knowledge to perform the duties, not to mention possible emotional conflicts or biases.
You can also choose a professional trustee like a lawyer, accountant, or advisor of some sort. With this option, the trustee will have expertise in their field and be impartial. However, it can be a costly option, and you may not feel as comfortable with them managing your estate.
You could also choose an entity instead of an individual, like a bank or trust company. This option may yield the most professionalism and ability to manage the complexity of a trust. However, it can be expensive, and your estate may not receive the attention it deserves.
Regardless of who you choose, the most important thing is their character. You want a trustee who is trustworthy, of good moral character, has the time and willingness to take on this role, and is capable of managing your assets and estate. To learn more about choosing a trustee, reach out to an experienced attorney today.
