Choosing a trustee for your living trust means choosing the person that will step into your shoes and make similar financial decisions as you would make for the well being of your beneficiaries. Choosing a Trustee can be a daunting job and a lot goes into deciding who that person or entity will be.
In today’s blog post, we will explore choosing a trustee that is a family member or a friend. There are corporate trustees and fiduciaries as well, but today we our focus is on those families that are trying to decide on choosing the right family member or friend as a trustee. Below, I discuss the most important factors that I think you should consider while making this big decision, in no particular order.
Who to pick
- Someone who is conservative with their own money!
- Someone your age or younger than you, especially if your kids are very young.
- Someone that is patient, and gets along with your close family members.
- Someone that you know is not afraid to ask for help, from lawyers, accountants etc.
- Someone that you trust implicitly, not only with your money but with your children’s future.
Who not to pick!
- Someone that spends extravagantly outside of their means.
- Don’t pick someone simply because they are in the financial industry or have experience dealing with another person’s estate.
- Don’t pick just one person without any backups. Make sure you group people to serve together or at least have two or three backup trustees.
- Someone that gets most of their information from Google or Forums because those are wrought with misinformation and you don’t want someone that will act on information that is not from the right source.
Often times, we get clients that do not have any local family members. In those situations, a lot of clients choose to do an exchange with close friends in similar situations. That their friends will serve as trustee for them and they will serve as a trustee for their friends’ living trusts.
Who you should choose as a trustee for your living trust is a big decision, so my last pointer is to check back into your living trust every so often to make sure your choice is still good and have not moved away, drifted apart, or someone closer to you has moved near you and you prefer to name that new person.
I hope these tips help a little bit, please feel free to contact us if you have any questions about choosing a Trustee for your California Living Trust.
DISCLAIMER: This post is not legal advice and should not be construed as such. It is for information and advertising purposes only.