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How do I choose the right trustee for my estate?

On Behalf of | Aug 9, 2022 | Estate Planning |

Including a trust in your estate plan can give you more control over your assets even after passing on. Once you set up a trust, you need to figure out how it will be managed. And this is where a trustee comes in.

A trustee is an individual or entity that acts as the custodian of your trust. Given their enormous responsibilities, it is important that you get the choice of a trustee right.

Here are two questions to help you designate the right trustee for your estate.

Should you appoint an individual trustee or an agency?

Most people assume that individual trustees are usually cheaper than institutions like trust management agencies. However, this is not always the case. An individual trustee must work with other professionals like CPAs, attorneys and investment managers to ensure that all trust-related issues are fully executed. And each of these services has a price tag. Add these charges to the trustee’s fee, and you may end up paying more than you would an agency that provides all these capabilities under one roof.

Do they have the capacity to manage your assets?

You’ve worked hard for your assets. You can only expect that your designated trustee will exercise utmost prudence while managing it. Most often, a trust that is administered by an individual trustee is rarely subjected to scrutiny, and this can lead to mismanagement of the trust.

A trust that is managed by an agency, on the other hand, is reviewed and supervised by internal auditors as well as the regulating agencies. This ensures that clients’ trust accounts are safeguarded at all times.

A trust offers several benefits to the settlor. Find out how you can choose a trustee that serves your interests.