By Kathy Cooper
It’s not easy to choose a trustee to take care of your affairs and distribute your assets after your death, but there are some guidelines that can help. Our clients typically choose the oldest of their children or they want their children to act as trustees together. Is this the best way to go? The answer is, of course, it depends.
First, take a look at your plan to see what your trustee(s) will face. Is your plan specific, straightforward and simple or will your trustee be required to work out the details? The more specific you are, the easier it is for your trustee.
Next, think about your situation. Is your estate complex enough that your trustee will be required to understand advanced financial concepts and tax implications in order to act in their capacity? Is the family situation of one or all of them going to present challenges that your trustee must resolve?
In 2007, the Saturday Evening Post published a list of Dos and don’ts for selecting your trustee. The author said that naming a child or children can work out well if:
- you are leaving everything to your children equally
- your distributions goes to your children outright
- your children are good candidates to be trustees (financially savvy, trustworthy, organized, compassionate)
Here are a few factors that make the choice more difficult. If your answer is yes to any of these, make an appointment immediately with your elder law attorney to discuss your options:
- you are worried that your choice of trustee will hurt feelings
- you have a lot of debt that your trustee must pay from your estate
- one of your children is a spender or has a spouse who is
- all of your kids get along great, except (fill in the blank)
- all of your kids are successful, except (fill in the blank)
- on of your children has special needs and/or is receiving government benefits that may be jeopardized the receive an outright distributions
- you have a lot of real estate or a large farm, but not a lot of cash assets
Most of our clients say that their children all get along fine, so there should be no problem. In reality, our experience is that money can change the perspective of the best of them. Your trustee plays a critical role in making sure the family remains a family after you are gone. Give us a call, we can help you understand your options.
