When creating a trust, it’s critical to name the right person as your trustee. This is the person who will step in to manage and administer your trust upon your death. If you don’t choose a trustworthy and honest individual, it could end up costing your loved ones in the long run.
Here are some of the many things a trustee is responsible for:
- Following instructions: Most importantly, the trustee is responsible for following the terms and conditions of the trust.
- Managing assets: Until distribution, the trustee will manage assets, such as real estate and investments.
- Investing: It’s not always necessary, but there may be assets that require investing while the trustee is in charge. They must do so in a conservative and reasonable manner.
- Keeping accurate records: It’s a must for your trustee to keep accurate records, as this allows them to report as necessary to the beneficiaries.
You don’t want to choose a trustee who will make decisions based on their own best interests, as opposed to those of the trust. Not only will this throw your beneficiaries for a curve, but it can also result in the personal liability of the trustee.
As you create your trust, think long and hard about who you’ll name as trustee. You have many choices, so keep an open mind as you compare the pros and cons of each person.
Once you make a selection, talk it over with the person to ensure that they’re on board with the idea. If they are, you can continue forward with this person as your trustee.
