Selecting the right trustee is the most important part of of estate planning. Ask yourself the following questions before you make a trustee selection:
1. Do I absolutely, and completely trust my successor trustee?
2. What can I do to protect my trust if something goes wrong? You can require that your trustee post a bond. This is highly recommended if your trustee is unrelated to you.
3. Has my trustee ever displayed unfairness or disloyalty towards anyone? One thing I have found out is that if the trustee at anytime has displayed disloyalty, or unfairness in attitude or in action, he or she won't make a good choice for a trustee. Remember that your trustee must be impartial towards the beneficiaries.
4. Is your trustee law abiding? If your answer is no, immediately chuck this successor. People with criminal records or histories don't generally make good trustees.
5. What financial information do I know about my trustee? If a trustee has had a history of problems with creditors, or bankruptcies, he or she will generally not make a good choice.
6. After having had a dialog with your trustee about your distributions, did your trustee try to change your mind? If the answer is yes, don't select that person as a trustee. You want a trustee who will without question follow your directions in your trust, not one who will impose his own personal opinions when distributing the assets.
7. Does your successor trustee get along well with people? If your answer to this question is no, skip over this person as a choice of trustee. A difficult personality in trust administration usually brings about litigation in the trust. A problem solver is the type of person you would want to select as a trustee.
You can set up your own estate plan and trust with a proper documentation of your choices of trustees with your attorney. It is not that difficult and will help simplify things for your family after you’re gone. Planning for your estate gives you peace of mind knowing you have taken the steps now to prepare your family in the event of your death.
Pooled or Shared Trusts with automated distributions can help diffuse some of the trustee's work in administering the trust as well as participating in a Trust Administration Plan(TM).
Asking lots of questions and following these simple but important steps you can ensure that you are looking out for the best interests of your family in the event of your death. Asking the right questions from your successor trustees may save your family countless inconveniences by avoiding the courts and probate.
Mina N. Sirkin is a Family Wealth Lawyer and a Media Legal Expert in Los Angeles, California. Ms. Sirkin is a Board Certified Specialist attorney in Estate Planning, Probate and Trust Law by the Board of Legal Specialization of the State Bar of California. [email protected]. http://www.SirkinLaw.com.
Copyright 2008 Mina N. Sirkin.
