Founder
When you’re preparing an estate plan or starting a Medicaid trust, one of the most important decisions you have to make concerns your selection of a trustee. The trustee has the legal authority to manage a trust and its assets. A trustee is also responsible for managing and distributing trust assets to beneficiaries according to your wishes. Putting the management of your assets in the wrong hands can lead to disastrous consequences for you or your family.
Key Considerations When Choosing a Trustee
Selecting a responsible and trustworthy trustee is a vital element of creating a robust estate plan. Here are some of the key considerations you must take into account before choosing a trustee.
Trustworthiness and Responsibility
The individual you place in charge of managing your trust and its assets should be someone you trust, someone who can act in the best interests of you and your named beneficiaries. You also want to select someone with a strong sense of ethics and integrity.
Financial Savvy
While you want someone you can trust, like a close friend or family member, you must also consider their skill set. A trustee should have the necessary financial knowledge and skills to manage the trust’s assets effectively. Without these skills, it can be easy to mismanage trust assets and underestimate tax implications, leading to fines, lawsuits, and the squandering of your assets and hard-earned money.
Relationship with Beneficiaries
The trustee must have a good relationship with the beneficiaries, as this can facilitate smoother administration and communication between family members. In situations where family dynamics are complicated, the trustee should be capable of handling potential conflicts with sensitivity.
Availability and Proximity to You or Your Assets
Ideally, you want a trustee who lives near you or the beneficiaries for practical reasons. Proximity can simplify communication between all parties and manage trust assets. You also want to ensure the trustee you choose can dedicate their time and energy to the job. Managing a trust can be challenging. It takes time and a significant amount of work. A trustee must understand the time and commitment they are signing up for and be prepared to do the necessary work.
Longevity and Continuity
Consider the age and health of the trustee, as you want someone who can serve for the duration of the trust. You may also want a contingency plan for a successor trustee if the primary trustee can no longer serve.
Compensation
Trustees need compensation for the time and energy they pour into managing your trust and assets. Ensure that the trustee’s compensation is reasonable and clearly defined in the trust document, whether you select an individual or a corporate trustee to manage your assets. You should all understand the fee structure of the arrangement.
Understanding of Your Wishes and Goals
A trustee should understand the purpose of the trust and clearly know your wishes and ultimate goals. They should also be able to communicate with you and the beneficiaries. Someone who does not understand your goals and concerns cannot effectively manage your assets and ensure your wishes are met.
Contact a Skilled Florida Estate Planning Attorney Today
Designating a trustee can be a daunting task. With so much to consider, you want to assign the task to someone you can trust, someone with the knowledge required to protect your assets, wishes, and family. At The Law Office of Angela Siegel, our estate planning team wants to help you create a solid estate plan that reflects your goals and wishes and offers maximum financial benefits to you and your family.
Contact our Florida office today to arrange a confidential legal consultation. We want to help you create a personalized estate plan that identifies and solves your most pressing concerns.