When you create a trust for your inheritance, you will need someone to manage it when you’re gone. This trustee will take care of your assets and follow your instructions to distribute them to your heirs.
But what makes a good trustee? You want someone who will make decisions in the best interests of your estate and your wishes. Here are a few things to think about before choosing your trustee:
- Trust your trustee – Someone who manages your estate should be trustworthy. You want to pick a person who is responsible with money and won’t consider your assets theirs. Even if your trustee isn’t a financial expert, he or she should know how to ask for help from accountants or lawyers.
- Should I keep it in the family? – If you have a complex family dynamic, you might want someone who understands that to take care of your assets. However, family drama can also cause your relatives to make poor decisions. It can also create rifts between them.
- How will your loved ones react to your decision? – Once you’re gone, your heirs will need to work with the trustee. If you choose someone they don’t respect, they may try to challenge the trust.
- Do you need a third party? – You can choose an attorney or a trust company to serve as trustees. A third party can take the drama and emotion out of managing the trust. But you may want to choose a third party that understands the dynamics of your family.
A responsible trustee is a significant part of your estate plan. By choosing someone with your best interests in mind, you can ensure that your wishes will be followed.