Once you decide to create a trust, you’ll be faced with a variety of questions that require your attention. For example, you need to choose a trustee. And when doing so, it’s imperative to name the right person.
Answer these questions as you compare trustees on your search for the right one:
- Can you trust the person? If you can’t trust the person completely, you’re best off considering another individual for this responsibility. The last thing you want to worry about is a trustee that will make decisions that benefit them, as opposed to the trust and its beneficiaries.
- Can the person make difficult decisions at difficult times? For example, if you’re incapacitated, your trustee may need to step in and make important decisions regarding the way in which your assets are invested. You must have confidence that they’ll do so to the best of their ability.
- Will they stick with their responsibilities over the long run? A trustee has the potential to remain in this position for many years, so it’s a must that they’re devoted to the responsibility. If you think a person will get bored with their responsibilities or move on for another reason, mark them off your short list.
Don’t make the mistake of assuming you can name just anyone to act as your trustee. If you do this, you could end up with the wrong person in place, which forces you to make a change and possibly ruin a relationship.
Once you have the right trustee in place, you’ll feel better about the overall health of your trust.