Many of us have managed our own affairs for the majority of our lives. As a result, the prospect of arranging for someone else to take care of them can be daunting. Often, this is a decision that people will put off as long as possible.
However, it can be beneficial to settle this issue before it is taken out of your hands. Creating a revocable living trust is just one method of handing your affairs into the care of someone else. One crucial aspect of this is designating a person to manage your assets after you have passed away. This role is commonly referred to as a successor trustee.
Picking a successor trustee requires a lot of thought and consideration. Here are some common questions and answers that can help.
What is the role of a successor trustee?
A successor trustee is tasked with managing, dividing or investing a revocable living trust’s assets once its grantor (you) either becomes incapacitated or dies. You will need to make sure that his person is trustworthy as well as able and willing to carry out your wishes.
Do relatives and friends make good successor trustees?
Close friends and relatives are often selected to be successor trustees. A close friend or family may be suitable if they are competent in managing finances, willing to take on the role and able to avoid conflicts by remaining unbiased — but not everyone will fit that description.
What are the benefits of choosing corporate successor trustees?
There are several potential benefits to choosing corporate successor trustees. Firstly, they will generally be around indefinitely. Furthermore, corporate entities will typically remain impartial and act objectively in following the trust. Additionally, they are usually well-versed in dealing with these matters. For example, they tend to keep detailed records and employ staff with financial expertise.
Understanding the process of choosing a successor trustee is important to note that when planning your estate.
