Three Characteristics Needed In Good Successor Trustee
In choosing your Successor Trustee, it is imperative that you carefully consider the person you are appointing and whether they have the necessary characteristics for being the Successor Trustee.
The Successor Trustee is the person you have nominated in your Trust to handle your estate’s administration after you passed. Being a Successor Trustee is a sizable task, including overseeing the managing of your money, distributing assets, and making decisions that can impact the beneficiaries. The Successor Trustee is going to be connecting with your bank to manage and invest money, selling your house, paying bills, and making final payments to beneficiaries. Choosing the right successor trustee is a difficult and emotional decision.
The following are three qualities needed in the person you’re selecting as Successor Trustee.
1. Financial Responsibility
The Successor Trustee is the person you place in charge of managing your finances for your beneficiaries after you pass away. Picking someone who struggles with their finances or has declared bankruptcy in their past is not the right choice for handling your finances. Why would we feel comfortable handing over control of your finances to someone who hasn’t managed their own?
2. Organization
The Successor Trustee will be responsible for providing detailed summaries accounting of the transactions and records of trust assets. The job of Successor Trustee is often underestimated and turns into a more significant project than most people think. Being organized and able to keep documents and finances separated, and to successfully administer the Trust are crucial characteristics.
3. Trustworthiness
The Successor Trustee will be having direct access to every aspect of your life and finances. The risk of abuse and opportunity for inappropriate behavior is high. To avoid the chances of a Successor Trustee abusing their power and your beneficiaries from fighting with your Successor Trustee over their actions, pick an individual with integrity and trustworthiness who will handle the responsibilities.
It is crucial for families with minor children to have the right Successor Trustee because they will be the ones overseeing the accounts and acting as the gatekeeper for your child to reach the assets. Often people will not want their children to inherit until they are old enough and responsible enough to inherit. By setting an age for an inheritance, your Successor Trustee will have to act as the gatekeeper for your children to go through before they can get the finances for needed expenses.
Having a thoughtful discussion with a knowledgeable attorney can help guide you in the decision of whom to select as your Successor Trustee. Often people want to choose their eldest child to act as the Successor Trustee without considering whether they are up for the task and have the necessary characteristics. A trusted friend or other family member may be more qualified and better suited to take on this task. Professional individuals such as banks or private fiduciaries that will administer the estate for a fee (usually a percentage of the estate) should you feel that an outsider would be better for your situation.
About The Law Office of Zachary B. Whitman
Zachary B. Whitman is licensed to practice law in California. Information presented on US laws. This article is legal information and should not be seen as legal advice. The opinions contained herein are those of Zachary B. Whitman and not of any other organization. The information contained herein does not create an attorney-client relationship nor a requirement that Zachary B. Whitman take you on as a client.
