When making an estate plan and setting up a trust, one key step is to select the appropriate trustee. You can choose an individual, such as a family member, or you can choose a professional trustee. Either way, they are in charge of administering the funds within that trust to the selected beneficiary.
Choosing the correct person for this role is important. Below are a few things you may want to consider.
If they have the right skills
First and foremost, consider their skills, education and experience. Being a trustee can be complicated, so it may help to have someone with a legal or financial background, as well as someone with a high level of education.
If they have the time required
Additionally, the trustee will be involved with the fund and working with the beneficiary for a significant amount of time into the future. Be sure that they actually have the time and availability to take on this role, and ask them to ensure that they are willing.
If there are any conflicts of interest
When you are choosing a family member, there is always the chance that there could be a conflict of interest between the trustee and the beneficiary. Carefully consider the relationship the two have with one another, and choose a trustee who will always put the beneficiary’s best interests first.
Someone who understands your vision
Finally, talk with the trustee and tell them about your vision and your goals when it comes to estate planning. You need someone who is on the same page and who will work to administer the funds as you intended.
Setting up a trust
Choosing the correct trustee is just one step to take when creating your estate plan. Take the time to carefully consider all of the legal options you have when setting up a trust and gathering other estate planning documentation.