Tips on Choosing the Right Trustee

 Posted on May 24, 2022 in Estate Planning and Probate

If you are leaning towards using a trust over a will as your primary testamentary tool, you are among countless others making the same smart choice. Using a trust allows your loved ones to bypass probate, which can be very complicated in Texas. Often, trust administration is much smoother and allows distributions to be made to your beneficiaries much more expediently. Trusts can also help you avoid the expense associated with probate so that more money stays in your loved ones’ hands.

One key factor in how smoothly your trust can be administrated is your choice of trustee. The individual you choose may have some discretion in making distributions and will be responsible for managing any property or funds in the trust. It is important to make the right selection, as a poor choice could cause headaches for your beneficiaries down the road. You should discuss your options with an attorney before making a final decision. 

Advice on Appointing a Good Trustee

Of course, your trustee should be someone you trust, but there is often more to it than that. You also need to make sure this individual has strong money management skills and good judgment. Some factors to consider include: 

• Financial responsibility - One of the trustee’s most important duties is to manage the funds responsibly. Appointing someone who has a history of being irresponsible with money could cause serious problems, no matter how good of a person they are or how much you otherwise trust them. Picture this individual winning $100,000. Would they blow all the money very quickly, or would they save and invest?
• Family - You should consider choosing someone who is familiar with your family dynamics and who knows your beneficiaries and roughly what to expect from them. However, choosing a family member can cause complications. There could be accusations of favoritism, or resentment within the family should any issues arise. 
• Professionals - On the flipside, professional trustees are an option. These individuals are skilled at managing trusts and can remain neutral and unbiased. This may be a good option if the trust assets are substantial and require skilled management.
• Flexibility - You are not necessarily required to lock into one choice. There is always a risk that a trustee will turn out to be unsuitable once you are no longer around to replace him. You could write into your trust a mechanism for the beneficiaries to easily remove a trustee should problems occur. 

Choosing a trustee is a big decision, and one that you may not want to make alone. It is a good idea to have a few options in mind and discuss them with your attorney before signing anything. 

Call a Comal County Trusts Attorney

Geoff Mayfield, Attorney at Law creates trusts that work. Our skilled and experienced San Antonio trusts lawyer will custom design a trust that is right for you and your beneficiaries. Contact us at 210-535-0870 for a free consultation. 

Source:

https://www.forbes.com/sites/forbesfinancecouncil/2021/02/05/three-things-to-consider-when-choosing-a-trustee