A Few Tips To Keep In Mind When Choosing A Trustee

Choosing a trustee is one of the most important actions a person setting up a trust can make since it is the trustee that will have complete control over the distribution and management of assets much the same way a ship’s captain has absolute control while at sea. That’s why it is important to keep a few things in mind when choosing a trustee such as the following:

• Trustworthiness should always be the number one factor when choosing any trustee. The best investment mind in the world wont make the trust a single red cent if the corpus is being stolen.
• The next best quality to look for is good judgment. A trustee will often times have broad discretionary powers and a settlor will be ill served if the trustee has poor judgment be it financially or when making distributions to beneficiaries.
• Make sure to choose a trustee that will be able to manage the trust for an extended period of time. Being familiar with the assets and the beneficiaries is of great importance in management and helps avoid the risk of bringing in a new trustee that might not fully understand the settlor’s intent.
• Lastly, try to choose someone that has a background of sound money management. The trustee does n0t need any expert knowledge or training but they do need a history of making sound financial decisions that are not reckless or impulsive.

See, How to Choose a Trustee, Elder Law Answers, November 9, 2015.