Trusts are an important estate planning tool. Assets within your trust will be overseen by a trustee after you’re gone, and this person is responsible for investing your money and ensuring heirs live up to the terms of the trust when receiving assets left to them. Choosing the right trustee is crucial to ensuring your final wishes are carried out, as explained by Forbes.
Your trustee will have lots of financial responsibilities. Accordingly, you want to choose someone who is comfortable with financial management topics. Even if you trust a friend or relative with your finances, that doesn’t mean the person will be a suitable pick. This is especially true when people have financial issues of their own, such as poor credit or difficulty keeping up with bills. Chances are, these people will also have difficulty managing your money, which might greatly damage your estate.
While many people use family members as their trustees, but this can also lead to problems. Resentment about the way money is distributed or who has the most authority can cause problems within families. It can also make the work of trustees that much more difficult, especially when disputes constantly pop up. There are other options at your disposal, such as instituting a bank or attorney as your trustee. That way you can rest assured that your wishes will be carried out.
You can also institute co-trustees. This allows people to collaborate and offer insight on your wishes should any problems arise. Trusts are quite effective, provided you use them correctly. That’s why it’s recommended that people secure reliable legal assistance when creating estate planning documents such as wills and trusts.