People create trusts to fulfill a particular purpose. This purpose may be to avoid probate, manage finances for someone who is fiscally irresponsible or ensure the financial security of a family member with special needs.
The trustee has a crucial role, as they are responsible for managing the trust’s assets on behalf of the beneficiary. But is it possible to have more than one trustee?
The advantages of co-trustees
When choosing a trustee, you want someone with integrity who understands your needs and values. Appointing more than one trustee creates a system of checks and balances, increasing the likelihood of identifying and correcting errors or potential mismanagement. Co-trustees can monitor each other’s actions and decisions and hold each other accountable. This provides an additional layer of security and ensures the trust is being handled in the best interests of the beneficiaries.
Co-trustees can also bring diverse skills to the table, according to their expertise. This makes it easier to share the workload, handle administrative tasks and make investment decisions.
Having multiple trustees facilitates a collaborative approach to decision-making. Co-trustees can discuss important matters and provide different perspectives and insights. This collaborative environment often leads to more informed decisions.
Appointing co-trustees can ensure the continuity and stability of the trust’s management. If one trustee becomes incapacitated, resigns or passes away, the remaining co-trustees can continue to manage the trust without interruption. If another trustee is brought in, the existing co-trustees can provide guidance for a seamless transition.
If you decide to appoint more than one trustee, it’s important to clearly define each person’s roles and responsibilities in the trust document. The document should also include dispute resolution mechanisms to address potential conflicts. With the right people in place, you will have peace of mind knowing that your assets will be managed in the best interest of your loved ones.
