One of the most important steps in creating a trust is choosing the right trustee. This person will administer the trust according to its terms and act in the best interests of the beneficiaries.
In a revocable living trust, the creator often serves as trustee while alive. After their passing, the successor trustee steps in. Irrevocable and testamentary trusts (those formed through estate planning documents) have a trustee named from the start. Because these trusts cannot be changed, selecting the right trustee is especially critical.
While many people feel tempted to choose a family member or close friend, it’s important to consider whether that person can truly fulfill the role. Here are key questions to ask.
Will They Be Able to Fulfill Their Duties?
A trustee’s job can be demanding. A family member might become ill, incapacitated, or otherwise unable to carry out responsibilities. They may also feel pressure from other relatives, making it harder to follow the trust’s instructions faithfully.
Will They Remain Unbiased?
Trustees must follow the trust’s terms, not personal opinion. A family member might think they are helping by adjusting distributions or making certain investments, but if those actions conflict with the trust document, they could breach their fiduciary duty.
Could Conflicts of Interest Arise?
If the trustee stands to benefit from the estate, it can create conflicts. For example, a trustee may sell shares of a family business held in the trust, knowing it could increase the value of shares they inherit personally. Even the appearance of a conflict can cause disputes among beneficiaries.
Do They Have the Necessary Skills?
Trust management requires financial and legal knowledge. Even a well-intentioned trustee may make costly mistakes if they lack experience. Poor investments, missed deadlines, or mishandled taxes can all undermine the trust’s purpose.
Why a Professional Trustee Makes Sense
These challenges are why many people turn to professional trustees. At Trust Experience, Inc., we bring the expertise, impartiality, and accountability needed to manage trusts of all sizes and complexity. As professional fiduciaries, we are bound by law to uphold the trust’s terms and act in the best interests of beneficiaries.
Choosing a professional trustee gives you peace of mind that your trust will be administered properly, without family conflict or costly mistakes.
Contact Trust Experience, Inc. today for a complimentary consultation and learn how our professional trustee services can help safeguard your legacy.