As part of your estate plan, you may decide to create a trust. Maybe it’s a discretionary trust to guide the way that someone spends their inheritance. Perhaps it’s a special needs trust to provide specific assets to a beneficiary without disqualifying them from special needs benefits. These are just a few examples.
The trustee is the person who will be in charge of making the distributions to the beneficiary, who receives the money. After you pass away, the trustee ensures that the trust is run correctly. Below are some qualities to look for in this person.
Proficiency and understanding
First of all, handling complex financial accounts can be difficult for some individuals. Make sure you find someone who understands what is required and is proficient in these types of tasks.
Honesty and trustworthiness
Disputes revolving around trustees often happen when they are not honest or they use the money for personal gain. It’s important to find someone who will truly put the beneficiary first.
Willingness to take on the role
Finally, you also need to find someone who is willing to have this role and who will work with the beneficiary to make the necessary distributions. They should be relatively close to this person – geographically and relationally – so that communication is easy.
Setting up your estate plan
When you decide who to use as a trustee, then you just need to know how to design the trust so that it works for your family. There are many different options, and a trust should be specifically designed around your goals. Take the time to carefully consider the legal options at your disposal.
