Trusts can be excellent additions to estate plans. There are various types of trusts that function in different ways, and selecting the correct one to handle a person’s needs or wants should be treated seriously. However, for as much time as a person in Lake Charles might spend on creating a trust during estate planning, he or she might not understand just how important the trustee is. Here are a few things to keep in mind when selecting the right trustee.
A trustee is responsible for managing the trust according to the wishes of the trust’s creator. This could involve managing investments, filing taxes, distributing benefits and generally protecting the trust’s assets. Many people choose family members or close friends to act as trustees without considering whether these individuals have the right skills to manage a trust. It is important to select a trustee who can handle the obligations of managing a trust. This means that it is not a good idea to simply choose the closest relative unless he or she is capable of taking on the role.
Not everyone has a trusted loved one who understands how to manage a trust. Instead, these individuals may choose to use corporate trustees, such as bank trust departments or trust companies. A corporate trustee should manage the trust objectively with a focus on its long-term goals. He or she can also work alongside a family member as a co-trustee. The co-trustees can share duties, and a family might be less likely to a corporate trustee’s actions.
There is no such thing as a one-size-fits-all process for estate planning. What is best for one Lake Charles resident might not be a good fit for another. This is why it is important to consider individual needs and loved ones’ capabilities when selecting a trustee.