Choosing the Right Family Member as Trustee: Promoting Harmony When Managing Your Estate Plan
Estate planning establishes a path for family members to inherit your property, but it must involve selecting the appropriate family members to manage your estate and execute your plan effectively. Revocable living trusts serve as a powerful planning tool, allowing you to manage, grow, and distribute assets within your estate plan. Among the crucial aspects of effective planning lies the decision of choosing the right trustee(s) to oversee the trust and distributing the assets it holds. Our team will help guide you to ensure you select a trustee who will manage your estate while fostering harmony among those you leave behind.
Consider the Implications of Your Choice
A trustee follows the instructions you leave in your trust on your behalf and when you are no longer able, such as if you can't make decisions on your own, or you have passed away. A trustee must operate without any conflicts of interest that would stop them from acting in the best interests of the beneficiaries.It is common for parents to consider one of their children as a trustee. Selecting one child simply because they are the oldest, for example, may create resentment among other siblings. A default selection like this can interfere with family relationships but may also lead to mismanagement of your estate. It's crucial to consider whether your selection could compromise your trustee's ability to carry out your best wishes. The right choice will keep your family united and ensure your plan is executed precisely as you intended. They should have experience in managing basic investments, and understand when they should engage third party accountants, attorneys, and bookkeepers to handle some of the financial obligations of their role. Our firm will help you work through this selection process with your family.
Identify Family Members Who Are Universally Respected
Most families have that one beloved aunt or uncle whom everyone loves and respects. Do you have siblings of your own who are capable of handling trustee duties without disrupting family harmony? This option can be a good alternative, but it does come with certain risks. For example, the age of your trustee is a factor to consider, as you wouldn't want them to predecease you.
Plan for Succession
Choosing a trustee is not a one time decision. Over time, your life and circumstances will change. For example, the trustee you have selected may passes away before you. We advise our clients to establish a line of succession with several potential trustees. If you opt for an older trustee, it's wise to include younger alternatives in your succession plan. Likewise, it may be appropriate to select a licensed professional fiduciary such as a bank as the third option. This way, if the previous trustees are unable or unwilling to serve, the professional can step in. By creating a well-thought-out succession plan, you can ensure a smoother process for all involved, free from unnecessary disputes or conflicts. Our team is dedicated to working with you and your family select the right individuals for your estate, including trustees, healthcare proxies, personal representatives, and guardians for your children.