When creating a trust, you’ll need to appoint a trustee to control the assets. As the legal owner, they’ll oversee investments, file taxes, and fulfill other obligations. The trustee also controls when beneficiaries receive their inheritances, according to your wishes. To ensure the best future of your family, here are the traits to look for in a trustee.
Which Qualities Should a Trustee Possess?
1. Financially Responsible
If you can’t trust someone to not spend a small sum of money, don’t trust them with your entire fortune. This includes friends and family members who are known for making bad investments or spend more than they earn.
The trust should be controlled by someone who owns their own stocks, spends wisely, or is knowledgeable about finance and investing. This means they have prior experience working with investment advisors and will spend the trust fund capital responsibly if the legal document permits.
2. Meticulous Recordkeeper
As young children age, they may have more questions about their assets, and it’s the legal responsibility of the trustee to provide information to beneficiaries. Since the trustee will need to keep detailed, error-free accounts, pick a person who keeps meticulous records concerning their own taxes, stocks, and other financial responsibilities. Choosing a detail-oriented individual reduces the trustee’s liability and increases their transparency.
3. Strong Interpersonal Skills
As the grantor, you may decide naming co-trustees is in your best interests. The individuals can offer each other advice, share recordkeeping duties, determine who will pay which trust debts, and ensure beneficiaries receive assets on schedule.
A corporate co-trustee will make unbiased legal decisions, like not favoring one beneficiary over another, and adhere to the regulatory state laws. To avoid disputes, choose co-trustees who work well with others.
Once you’ve found your trustee, complete the process by working with the lawyers at Ng & Niebling in Honolulu, HI. These attorneys have provided reliable estate planning services for families throughout Oahu for over 40 years. Call (808) 732-7788 to schedule an appointment to form your trust.