Choosing the right trustee can be as important as choosing to create a trust in the first place. Without the right person administering the trust, all of your careful planning could go to waste.
Some people are quick to name a specific individual of the person they want to manage their trust. Others either have no viable candidate or multiple people that they have a hard time choosing between. Understanding the different ways to approach naming a trustee can help you make the best decision for your circumstances.
Naming one person you trust
This is unquestionably the best-known solution for picking the trustee. Many people choose their most responsible child or a trusted (but younger) friend. However, there are many limitations that come from naming just one person. That is why many people choose the next option instead.
Making multiple co-trustees
There is no firm rule that dictates that you must name one person as your trustee. You can potentially choose two or more people to share the responsibilities of being a trustee.
This approach can be beneficial when you worry that the person you would name is too old or if you think that a conflict of interest might lead to someone misappropriating trust assets. The oversight of a second trustee could help avoid those issues.
Naming a corporate or professional trustee
You don’t have to choose someone you know to serve in a fiduciary role for your trust. You can name a financial professional or business to manage those assets and their distribution instead. Those with no close family and those who want to create a trust that persists for multiple generations may find that this approach works for them.
Choosing the right trustee is an important part of integrating a trust into your estate plan.