Creating a trust is an increasingly popular estate planning solution. It gives the testator more long-term control over what happens with their property and reduces the likelihood of a probate court challenge. A trust can also protect your property again creditor claims and estate taxation.
However, a trust isn’t an autonomous entity. It requires the administration of a trustee. You will need to name a trustee to carry out your wishes by managing and distributing the assets in the trust. You can pick any capable person to serve as trustee, but many people use one of the three solutions below.
They choose younger relatives or friends
Maybe you have a colleague at work whose integrity you trust completely. Perhaps you have a second cousin with a finance career, so you know they will make good investment decisions with the trust resources. People often choose someone that they know personally to serve as trustee.
They named multiple co-trustees
Perhaps is there is no one person in your inner circle whom you want to have assume authority over your last wishes. Maybe people you would choose are too young to handle the responsibilities now. Naming multiple people as co-trustees allows you to plan for the long-term future. It could also help balance the skills of one individual with the oversight of another.
Hiring a professional trustee
There are individuals who offer services as professional fiduciaries. Bringing in a professional trustee means that you don’t have to worry about causing conflict in your family by choosing one person as trustee. A professional trustee will also make it easier for you to create a multi-generational plan as well.
Exploring all of your options while creating a trust can lead to solutions that really meet your needs.