Selecting a trustee is easier said than done. It is good that you are creating a trust in Minnesota, as this has many benefits from an estate planning perspective. On the flipside, you need to realize that choosing the right trustee is extremely important.
Above all else, you must select a trustee you can trust. This person will be staffed with many responsibilities, all of which need to be taken care of in the appropriate manner. Here are some of the responsibilities:
— Recordkeeping. With so many transactions taking place, your trustee must be able to keep accurate records. Neglecting to do so will make things much more difficult.
— Trust administration. This is the most challenging part of a trustee’s job, as this is when the terms of the trust are administered.
— Investment management. In some cases, this is a big deal. For others, this doesn’t come into play. Even so, you want to choose a trustee who is capable of handling this task and all that it entails.
Before you select a trustee, make sure you compare several options. Who is most responsible? Who can you trust to provide a high level of care with every detail?
You are creating a trust because of what it can do for you while you are living, as well as the benefits to your family once you pass on. You don’t want to throw out all your good work by choosing the wrong trustee. Instead, compare your options, answer key questions, and realize that this decision is one of the most important you will ever make.
Source: Fidelity, “Why naming the right trustee is critical,” accessed June 16, 2016