If you choose to put your assets into a trust to pass down to your loved ones in the future, you have to appoint someone to take charge. This person is your trustee.
Since your trustee is in charge of your legacy, you need to ensure that you have the best possible pick. According to AARP, there are several important considerations before you make your choice.
How can you choose a friend or family member?
If you want to choose a friend or family member, you should consider expertise as important. Does he or she have any financial experience? In addition, it should be someone that you know can handle the responsibility and have common sense. Also, be careful not to choose someone who has poor health because he or she may not outlive you.
What about corporate or team trustees?
Corporate trustees can be valuable for some people. When it comes to corporate trustees, the trust cannot outlive the firm as long as the firm exists. One major factor to take into consideration is the price. Corporate trustees do cost more than individual trustees. In addition, they have more regulations and tend to be less personal.
A team of trustees may also be beneficial for some trusts. If you have a large or complex trust, it helps to have multiple parties control it. One trustee will not have his or her hands full or feel spread too thin. Of course, you also do not want to have too many trustees involved.
Whenever you establish a trustee, you should check on your trust every few years and ensure that this was a good choice. For example, if you name someone and become estranged later, you do not want to forget to take him or her off the trust.