This Week's Topic: TRUSTEE SELECTION

Who should be your Trustee is often-times difficult to decide. If you have a spouse that is also the parent of your children and who is reasonably able and fit, your spouse will probably be your first choice. Beyond that, things start getting somewhat difficult because your want effective administration of your assets without any conflicts of interest and without resentments and jealously and at the lowest cost.

There are many cross-currents present because we cannot predict the reaction and attitude of the beneficiaries to the person or persons or trust company that is named to eventually administer the assets. Many clients just give up and say to let the beneficiaries just get it all outright and do what they want with it. I believe that is short-sighted because of the great good that can come from a sound, well thought-out trust for children, grandchildren, other family members and charities. It is just too difficult these days to accumulate wealth and allowing beneficiaries total, unrestricted access to wealth typically results in substantial loss in a short number of years. That is what I have seen in my own practice and that is what others have written after having studying this issue.

There is no right or wrong in choosing a trustee, but the bad-mouthing of independent trustees, whether corporate or individual, that I have heard is without foundation in my experience. Yes, outside the family, independent trustees are paid for their services. But so should your own family members if you ask them to serve in that liability-exposed job, plus putting themselves in the position of listening to the complaints from their siblings or other family members. I suggest that you take a hard look at having an independent trustee with your attorney and how that might help to insure that what you really intend to happen, will happen.