This Week's Topic: Who Should Be Named Trustee?

Trustee selection can be difficult and frustrating. No one can do the job as good as you, but at some point our physical well-being will end and someone else will have to take over the management of our assets. Who will that be?

We want healthy, intelligent, competent and loyal managers of our affairs. We would prefer that they know us and have an idea of our philosophy and objectives. Children will be named if they fit the profile. Sometimes grandchildren or in-laws are chosen. Good friends can act for us as well as professionals such as our CPA or attorney. Bank trust departments and trust companies are in the business of providing trust services.

I typically tell clients do not act as a trustee unless you feel morally obligated because it is a close family member or close friend. Why not? It is usually a thankless job that is usually criticized and can lead to possible litigation for ordinary mistakes (negligence). And often-times there is no provision for trustee services in the trust agreement and, even if there is, what amount is fair? The trustee will think that the fee is too little and the beneficiaries will think it is too high.

The individual trustee, as opposed to corporate/bank trustee, should hire an attorney and CPA for assistance since the trust administration area can be