Some people establish trusts as they prepare for retirement. They might immediately appoint any healthy, younger person to serve as their trustee and manage the trust on their behalf.
Others might serve as the initial trustee and may make arrangements for another person to take over their position when they retire, die or experience medical challenges. A trustee must fulfill a fiduciary duty to the beneficiaries of a trust. They must follow the instructions provided by the person who created the trust and comply with all relevant statutes.
How can people select appropriate parties to serve as their trustees?
The right choice is critical
Selecting a trustee is a daunting prospect. They have administrative tasks that can last for years or even decades. The person creating the trust has to consider a variety of characteristics. Health and availability are both important, as is age. Proximity can also be important, especially if the trust includes physical assets that the trustee may need to secure and manage.
Reliability and trustworthiness are also important, as is the ability to manage stress. Trustees have to make difficult decisions in some cases and may experience conflict with beneficiaries.
In some cases, there is one clear candidate who can meet all of the criteria that the trustor establishes. Other times, the trustor might choose two or more people to act as co-trustees. Occasionally, those with limited close connections or complicated trust plans choose to hire professional fiduciaries.
Discussing the role the trustee may fill and plans for trust resources with a skilled legal team can help people make the right decisions when establishing and funding a trust. Those with support throughout the trust creation process can help ensure that their decisions, including who they appoint as trustee, will all help them achieve their goals.