There are many kinds of trust that can be used when completing an estate plan. These trusts can be Specifically designed to protect land, eliminate taxes, Provide some Assurance for finances into the future, for An individual who has a disability or special needs, or It could be for underage children or for family members that you want to provide some support to but not give a large amount of cash to directly. The type of trust that is created often determines who should be named as the trustee. When considering who should be the trustee here are some things you should think about:
WHAT CHARACTERISTICS SHOULD A TRUSTEE HAVE?
Not all trusts are complex or difficult. However regardless of the kind of trust you have created or desire to create there are certain characteristics that any trustee should have in order to be capable of acting as a trustee. These include the following :
- They should be honest and trustworthy;
- They should be mature enough that they can handle dealing with finances or property;
- They should be a young enough that they can likely survive you;
- They should have a personality that will allow them to deal positively with the beneficiaries of the trust;
- They should be living in an area close to where your assets and beneficiaries will be located; and
- They should be someone that you feel confident has the ability to manage your property or finances wisely.
WHO CAN I CHOOSE TO BE A TRUSTEE?
There are many choices about who can be named as a trustee of the trust that you create for your estate planning. There are advantages and disadvantages to all the choices that you have on who you name as trustee. For example you can name a family member to be the trustee. This person would know the other beneficiaries well, And will likely not charge anything at all or if they do charge anything it would be a small amount of money for administering the trust. The downside with a family member is that they may not be mature enough or have enough experience to deal with your finances or property.
Another possibility is to name a bank as a trustee. This often works well when you’re dealing with a trust that contains a large amount of money or financial instruments. Banks obviously have a great deal of experience in dealing with finances. The downside of naming a bank as a trustee is that they will charge for the services that they provide as the trustee. This usually comes in the form of at least a minimum payment that will be received as well as an annual percentage of the total dollar amount of the trust that is being administered.
Another option is to name a professional that you work with, including your attorney or accountant or financial advisor. Again, depending on the type of trust that you have created these individuals may be uniquely suited to deal with the trust property wisely. Like thanks, these individuals would likely charge a fee for the services they provide while acting as a trustee of the trust.
There are many choices on who you choose to name as the trustee of your trust. If you have questions about creating a trust, or determining who should be named as the trustee of your trust, we can help. Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Estate Planning attorneys in Idaho. You can also email Lane Erickson directly at lve@racinelaw.net. We will answer your Idaho Estate Planning questions and will help you solve your Idaho Estate Planning problems.
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