3 Tips for Choosing a Trustee for Your Living Trust

On Behalf of | Dec 10, 2021 | Estate Planning

You might be the person you trust the most when it comes to your property and assets. However, if you plan to create a living trust for estate planning purposes, you will need to appoint another person as administrator of the assets and property you put in the trust. To decide whom to appoint as the trustee of your living trust, you should consider three factors:

They must be someone you trust

Your trustee must be someone you know will act in your best interests, rather than their own. Choose someone who is responsible and who has not had a history of deceiving or stealing from others. Be cautious about naming someone who has had their own financial struggles, or who may be overcome by financial temptations. Remember that your trustee will have access to the assets in the trust. If you make a mistake, the trustee could unlawfully take money from the trust or mingle your assets with their own.

They must be likely to outlive you

Your trustee will be in charge of overseeing the distribution of the assets you put in the trust after your death. Because of this, you should consider appointing someone who is likely to outlive you. Also, make sure the person you choose is in good mental and physical health.

They must have time to manage the trust

Managing a trust requires a significant amount of time. Your trustee will have to comply with specific duties, like filing your tax returns, investing, paying off your debts, and keeping records of your trust account activity. These duties take time and effort. If you appoint a trustee that has a busy personal life, they may not be able to adequately manage your estate in your best interests.

Protecting your estate

Choosing a trustee is one of the most critical steps while setting up a living trust. An irresponsible trustee can harm the assets and property you put in the trust, either intentionally or unintentionally. Your trustee will have important duties and responsibilities, so you should not take this decision lightly.