One of the most commonly asked questions regarding living trusts is who should be listed as the successor trustee. Is it better to nominate a corporate trustee, family member, friend, or some combination thereof?
To answer this question, it is important to first examine a few important factors. First, you need to make a list of those you know well and trust. You should also consider which of those listed are financially savvy. Being a successor trustee is an important job and the position should not be filled lightly. This person will be making decisions for you financially if and when you become incapacitated, not just for your beneficiaries at your death.
Additionally, consider who would be willing to accept the position of trustee. It will do you no good if the person you nominate declines the position as successor trustee.
Next, address the age of the nominated successor trustee at the time the trust is created. If the person you are nominating is a generation older than you, consider the possibility that he or she may not be around at the time your trust needs to be administered. It is best to nominate someone your same age or younger.
A back-up or secondary successor trustee should be nominated in your trust. This will prevent court action to appoint a successor trustee should the first nominee be unable or unwilling. Co-trustees may also be a good fit if you know that the trustees nominated get along well, and together would make more balanced decisions for you or your beneficiaries.
Finally, you need to think about family dynamics. Do you know that certain family members may cause trouble for another family member or friend who is nominated as your successor trustee? If so, a corporate trustee may be a solution to this problem. However, it is important to note that they typically charge about one percent of the value of the trust on an annual basis for trust administration.
The information contained in this article is for education purposes only and does not constitute legal advice.
For more information on living trusts, please visit www.geigerlawgroup.com or (760) 918-5811.
To answer this question, it is important to first examine a few important factors. First, you need to make a list of those you know well and trust. You should also consider which of those listed are financially savvy. Being a successor trustee is an important job and the position should not be filled lightly. This person will be making decisions for you financially if and when you become incapacitated, not just for your beneficiaries at your death.
Additionally, consider who would be willing to accept the position of trustee. It will do you no good if the person you nominate declines the position as successor trustee.
Next, address the age of the nominated successor trustee at the time the trust is created. If the person you are nominating is a generation older than you, consider the possibility that he or she may not be around at the time your trust needs to be administered. It is best to nominate someone your same age or younger.
A back-up or secondary successor trustee should be nominated in your trust. This will prevent court action to appoint a successor trustee should the first nominee be unable or unwilling. Co-trustees may also be a good fit if you know that the trustees nominated get along well, and together would make more balanced decisions for you or your beneficiaries.
Finally, you need to think about family dynamics. Do you know that certain family members may cause trouble for another family member or friend who is nominated as your successor trustee? If so, a corporate trustee may be a solution to this problem. However, it is important to note that they typically charge about one percent of the value of the trust on an annual basis for trust administration.
The information contained in this article is for education purposes only and does not constitute legal advice.
For more information on living trusts, please visit www.geigerlawgroup.com or (760) 918-5811.