A revocable living trust is a powerful estate planning tool. It helps a person protect their resources and structure the legacy they intend to leave after they pass. The grantor who establishes a revocable living trust often serves as the initial trustee.
They manage the assets they transferred to the trust until they die or become incapacitated. At that point, a successor trustee takes over trust administration. Choosing the right successor trustee is important for the preservation of trust resources.
Key considerations before making a decision
There are many factors that influence the best candidate to serve as successor trustee. Proximity can be important, especially if there are physical assets, such as real estate, for the trustee to manage.
Choosing someone who is within a reasonable traveling distance of the grantor’s residence and major assets is often beneficial. The age and health of the candidate are also important considerations. The goal is to select someone who should remain healthy and capable of trust administration long after the grantor becomes incapacitated or dies.
Personal characteristics, including trustworthiness, organization and the ability to withstand stress, are also important to consider. Trustees must follow complicated instructions. They have access to valuable resources, which means choosing someone who won’t abuse that authority is of the utmost importance. They may face conflict with beneficiaries or outside parties, so they must be assertive enough to respond appropriately.
Creating a list of potential candidates and reviewing their qualifications carefully can help grantors as they seek to establish a revocable living trust. A discussion with a lawyer can help people make rational choices based on their needs, not just their relationships.