One of the most important decisions in trust-based estate planning is choosing who will be the trustee of the estate. Trust administration comes with significant responsibility, so it is vital to understand the legal considerations involved in trustee selection.
There are various types of trusts that grantors should be aware of, as the specific requirements for a trustee may vary depending on one’s individual goals.
Those starting the estate planning process can consider the following criteria in their search for a trustee.
What Is the Extent of Their Experience and Financial Knowledge?
Given the extensive fiduciary responsibility that accompanies trust administration, it is important to find someone with an appropriate level of experience in financial management to guide you toward making sound decisions. This party should be capable of responsible asset management, possess knowledge of state and federal tax laws, and understand the intricacies of estate planning from start to finish.
How Much Time Do They Have Available?
Depending on the size of the trust and the complexity of its terms, managing assets can be a demanding role. It is important to consider the attention and effort required in the position of trustee and select someone who can set aside adequate time for the role.
Do They Understand Your Unique Family Dynamics?
The financial and practical needs of every family vary, particularly in situations with complex dynamics or dependents with disabilities requiring special care. Grantors may benefit from finding a trustee who understands these specific needs and feels comfortable navigating familial conflict fairly.
Those planning a revocable living trust may find it helpful to choose a trustee they feel comfortable relaying changing family dynamics to during their lifetime.
Can They Be Impartial and Make Fair Decisions?
While it may be tempting to select a trustee from within one’s closest circle of family and friends, it is important to choose an impartial party who will remain objective in difficult situations. Trustees are responsible for making decisions that are in the best interests of all beneficiaries, and some with personal relationships with the family may struggle to remain objective.
Who Qualifies To Be a Trustee?
The main trustee qualifications are mental competence and a lack of criminal history. Grantors can choose almost anyone meeting that criteria to be their trustee, most commonly including:
- Family members without biases toward or against any beneficiary
- Trusted friends
- A trust attorney
- A financial advisor
- Corporate trustees such as bank trust departments or private providers (this option is typical for those with large charity assets)
Those with a revocable living trust will act as the trustee for their estates until their death or physical or mental incapacitation. The grantor must choose a successor trustee to take over in their eventual absence and assume their responsibilities, ensuring a continuous administration of the estate. The successor trustee should meet the above criteria to protect the stability of the trust and the interests of the beneficiaries.
Plan Your Estate With The Ebbert Law Firm
Selecting a trustee for your estate plan can be intimidating, given the significant responsibilities of the position. Working with a trusted estate planning lawyer may make the process easier to manage and expand one’s network of potential professional trustees through the firm’s connections to trust attorneys.
The Ebbert Law Firm offers comprehensive estate planning services, including trust planning and trustee selection. Our legal team can provide more information about the components of an estate plan and help you begin to shape a revocable living trust according to your unique needs.
Call 865-229-8509 to learn more.
FREQUENTLY ASKED QUESTIONS (FAQ):
What are the qualifications for a trustee?
The main qualifications are mental competence and a lack of criminal history.
Can a family member be a trustee?
Yes, family members can be trustees, but they should be impartial to all beneficiaries.
What is a successor trustee?
A successor trustee takes over the administration of a revocable living trust when the grantor dies or becomes incapacitated.