Creating a trust is an efficient way to manage your estate. However, this is only the first step. Choosing a reliable trustee is equally as important as this person will be responsible for managing your assets and carrying out your final wishes after you’re gone. Let’s go over what their role is and how to choose one.
What Does A Trustee Actually Do?
A trustee is in charge of managing your trust’s assets based on the grantor’s terms and conditions. Some of their responsibilities include:
- Distributing your assets among beneficiaries
- Paying estate taxes or expenses related to the trust
- Communicating with beneficiaries
- Keeping records of any transactions
- Acting in the best interests of the trust and its beneficiaries
To be a trustee, the person needs to be at least 18 or older. Many people choose to assign a close family member or friend to manage their trust. For those who don’t, they may work with professionals like attorneys or accountants to manage it for them.
Can You Change Trustees?
A revocable trust lets you change the trust’s details, including the designated trustee, whenever you need to. Modifying your trust’s terms can be as simple as creating an “amendment” and designating someone else.
Irrevocable trusts are more complex. Since a grantor gives up their ownership rights, you’ll need to get permission from the beneficiary before you change the trustee. In some cases, you may need to go to court before getting it amended.
How To Choose A Reliable Trustee
Go With Someone Trustworthy
A trustee’s responsibility is to act in your best interests. For this reason, you need to think carefully about who that person is in your life. Whether it’s your spouse or a close friend, make sure it’s someone you can trust to carry out your final wishes.
Avoid Conflicts Of Interest
The right trustee stays neutral. They will follow directions and distribute assets exactly how you outlined in your trust without trying to influence the situation. This is especially important in complex family situations where they don’t get along with each other.
Have A Backup
Even if you found a reliable trustee, have a “plan B” just in case. In revocable trusts, you serve as the trustee throughout your lifetime. But you have the power to name a successor trustee to take over once you pass on or become unable to manage your trust.
Since you can’t change an irrevocable trust, have at least two to three trustees as a backup before finishing the document. This way, you know there will always be someone there to manage it if needed.
Do You Need Help Managing Your Trust?
Creating a trust and finding a reliable trustee takes a lot of effort, especially when you’re unfamiliar with the process. Our estate planning lawyers at The Law Office of Todd Cushner & Associates understand every aspect of creating trusts, and we’re ready to guide you through this process. Please contact our team at (914) 600-5502 if you have any questions or want to schedule a consultation today.
