Establishing a trust involves multiple parties with distinct and significant roles, such as the trustee. This designation typically has responsibilities related to overseeing the trust, entailing fiduciary duties that require honesty and transparency. Additionally, these obligations have extensive demands regarding time, effort and commitment, which can be challenging to meet.
Because of these requirements, a grantor should be thorough and careful before appointing someone as a trustee. There are many ways to approach this process, but they can take the following routes based on the trust’s details and their circumstances:
- Appoint someone trustworthy, such as a family member or the designated executor, if there are parts of the estate excluded from the trust
- Assign multiple people as trustees to make the trust more manageable based on its size
- Hire a professional to become the trustee, such as an accountant or attorney
Depending on the situation and the trust’s features, these options can have pros and cons. For example, hiring someone to become a trustee could be beneficial because they have experience in this line of work. However, the fees for this service can become unreasonable, considering the trust’s size and value. It can be helpful to assess the circumstances before finalizing a decision.
Making sound trustee appointments
For some people, appointing someone to become their trustee is easy. For others, the selection can be an arduous process, especially if there are unique circumstances that can lead to disputes. Seeking legal counsel can help address these scenarios. Doing so can help the grantor consider all aspects of the situation before making trustee appointments. Also, experienced insight can help determine any factors and issues affecting the trust over time, allowing the grantor to prepare adequately.