Key Questions to Ask When Picking Your Successor Trustee
When you create a revocable living trust, you’ll need a trustee to be in charge of managing the property and accounts in the trust. Initially, this will typically be you. However, you’ll need to name a successor trustee to step in and do this when you no longer can. Choosing your successor trustee is an important task as this person will:
- Collect income from trust assets
- Pay bills and taxes
- Make investment decisions
- Buy and sell property
- Provide money for you (during your lifetime)
- Keep accurate records
- Stay organized
Who you choose for this role is important, so our experts are bringing you some key factors to consider when making this decision. Let’s discuss these considerations further:
Trustworthiness and Integrity
Your trustee will have access to your assets and must make decisions that align with your instructions. For this reason, pick someone honest, reliable, and capable of managing this responsibility without personal gain.
Questions to consider:
- Do I trust this person wholeheartedly?
- Will they follow my instructions without bias?
Financial and Legal Competence
Your trustee should be comfortable managing finances and understanding legal obligations, like paying debts or handling taxes. They don’t need to be an expert, but they should know how to manage the basics and when to seek professional advice.
Questions to consider:
- Is this person capable of managing financial matters and aware of their legal obligations?
- Can they recognize when they need guidance, and will they turn to the experts for help?
Ability to Handle Family Dynamics
A good trustee can remain impartial and handle potential conflicts between beneficiaries. It’s important that they have strong communication skills and can manage emotions and expectations without letting personal feelings get in the way.
Questions to consider:
- Can this person stay calm and collected during family conflicts?
- Will they be able to communicate clearly and impartially with all beneficiaries?
Consider a Professional Trustee
If you’re unsure about choosing your successor trustee or feel like your options are limited, a professional trustee might be a good choice. A professional could be especially helpful if you’re in poor health, have no family nearby, or if your potential trustees lack the time or ability to take on the role. A professional trustee can also be helpful if managing investments or trust laws feels overwhelming.
We can help you select, educate, and advise your successor trustee so they will have support and know what to do next to fulfill your wishes. Further, we can serve as your professional successor trustee. We make sure the trust stays on track, giving beneficiaries peace of mind that they can count on us even if the original trustee can no longer serve. Reach out to us today to learn more.