Creating a trust can be important for several reasons – a few of which include avoiding probate, protecting assets, and protecting minor children. However, choosing someone as your trustee can be a difficult decision. You must choose someone you trust to make responsible decisions regarding your assets should you become incapacitated and unable to do so yourself. Here are a few of the different types of trustees you may choose to appoint:
In many cases a family member, such as an adult child, is chosen as one’s trustee. Typically, there is a high level of trust for family members and oftentimes adult children are already responsible for helping out with many financial decisions. Usually a family member will also carry out the duties as a trustee for little or no compensation which can make this a very appealing option.
However, when appointing a family trustee there may be reasons to also designate a “co-trustee.” For instance, if you have any feeling that a single trustee might not consistently make the best decisions possible it might be a good idea to appoint a co-trustee to balance the situation. In this case two signatures must be obtained whenever a decision is made. While this can be a bit burdensome, having a co-trustee can often be a way to ensure that responsible action is taken.
Depending on your situation it may be best to choose an outside party as a trustee. Although this is generally a more expensive option than choosing a family member, appointing a corporate trustee ensures that professional and impartial decisions are made. This option also provides longevity – a corporate trustee is more likely to be around in 25 years, whereas a family member may not.
When creating a living trust there are several options available in deciding who will be your trustee. You must evaluate your individual situation to decide what would make the most sense for you. For help with this process contact Living Trust Attorney Adam J. Tobin today!