What to Look for in a Trustee

Earl E Watson III (Managing Principal, North American Management) recently published his article entitled A Matter of Trust, Private Wealth, May 10, 2010.

An excerpt from the beginning of the article is below:

Trusts have been part of the estate-planning vernacular for more than 1,000 years, but the demands being placed on the trustees who administer them may be greater than ever.

That means it is critically important that advisors and their clients only appoint a trustee after careful consideration. It also means clients should think twice about asking a trusted family friend or “wise” uncle to fill the role.

The important role a trustee plays in an overall estate plan can’t be overstated. Clients, for example, routinely expect trusts to carry on a family-owned business or carry out an estate plan for multiple unborn generations. At a minimum, a failure to understand the salient factors in selecting a trustee can result in missed opportunities. At worst, it can result in a failure to achieve estate-planning objectives, with irrevocable implications to the client’s family and others.

Special thanks to Jim Hillhouse (Wealth Counsel) for bringing this to my attention.