A trust is a legal document that can serve various purposes. Most commonly, a grantor (the individual who sets up the trust) uses it to hold assets and property. It can be used to govern the grantor’s wishes for how and when assets are to be distributed or transferred, generally if and when they pass away. People appreciate trusts for the simplicity of distribution to beneficiaries and the fact that assets in a trust can avoid probate court. When you set up a trust, it is important to choose the right trustee to manage your affairs. For legal advice regarding trusts and estate planning, contact a Sussex County estate lawyer today.
What is a Trustee?
A trustee is a person who takes responsibility for managing the assets in a trust. When a grantor establishes a trust and transfers assets into its possession, they must appoint a trustee other than themselves to handle administering the trust according to the grantor’s instructions.
While the grantor is alive, they generally have the right to alter the terms of the trust and distribute assets and funds as they see fit. The terms of the trust must list beneficiaries of assets and instructions like using some of the money to pay off debts, allocating funds for charitable donations, splitting real estate between their children, etc. It is the trustee’s job to ensure that the grantor’s wishes are honored after their death or incapacitation. The trustee is legally responsible for carrying out the trust in accordance with the trust agreement and essentially steps into the grantor’s role.
How Can I Make Sure I Choose the Right Trustee?
Choosing the right trustee is vitally important. The trust will likely hold most if not all of your assets and property, so it is crucial that you trust the person to whom you are giving control. When choosing a trustee, you need to consider who you are confident will step into your place and carry out your wishes as intended. You must trust this person and believe that they will not act in opposition to the trust agreement or attempt to benefit from your assets in any way that you did not predetermine. You should have complete and total faith in the trustee that you select.
Grantors generally choose one of the following to step into the role of trustee.
- Close family member
- Close friend
- Adult child
- Trusted attorney
- Trusted accountant
- Bank or trust company
An individual or entity can act as trustee. As long as you trust them and believe that they will act in your best interests and on your behalf, they will make a good choice.
While your selected trustee will be able to obtain legal help and guidance during the process, you should also consider the characteristics that would make a good trustee. They should have the experience and knowledge to manage your financial affairs, be able to make unbiased judgments, and be willing to sacrifice their own needs and wants.
As long as your trustee selection is over the age of 18, of sound mind, and not likely to become bankrupt, anyone can step into the role. However, it is important that you thoroughly vet your choices before making a decision. Speak with an experienced attorney for advice and additional information.
