Selecting the right initial trustee is a crucial decision when setting up your trust. If you're creating a revocable living trust, you will likely serve as the initial trustee. However, it's important to choose successor trustees who can take over when you're no longer able to manage the trust. The trustee's duties include managing the trust's accounts, paying bills, making investment decisions, and ensuring that the trust's instructions are followed.

Key Points for Choosing Your Trustee:

• You can be the trustee of your revocable living trust, and if married, your spouse can serve as co-trustee.
• Most irrevocable trusts do not allow you to be the trustee.
• While you can serve as your own trustee, it may not always be the best choice.
• Consider appointing an adult child, trusted friend, or a professional trustee.
• Trustees can hire professionals to help manage the trust's assets.
• Adding a co-trustee now allows them to learn how the trust operates and evaluate their abilities for future management.

Who Can Be Your Initial Trustee?

In most cases, you can serve as the trustee of your revocable living trust. If you are married, your spouse can act as co-trustee, allowing them to seamlessly manage your financial affairs if you become incapacitated or pass away. Many married couples opt to serve as co-trustees, especially if they have joint accounts and property.

You don't have to be the trustee, however. Some people prefer to appoint an adult child, trusted friend, or professional trustee to serve in this role. This doesn't mean giving up control; the trustee you appoint must follow the instructions laid out in your trust, and in many cases, you can replace them if necessary.

When to Consider a Professional or Corporate Trustee

A professional or corporate trustee may be the right choice in certain situations. If you're elderly, widowed, in declining health, or have no trusted relatives nearby, a professional trustee can provide peace of mind by managing your trust with expertise. These professionals can also be valuable if you don't have the time, experience, or desire to manage your trust's investments yourself.

Professional trustees are especially helpful for irrevocable trusts, which may have legal restrictions preventing you from serving as trustee. They offer extensive resources and experience to manage your trust's investments and ensure that your financial goals are met.

What to Know About Professional Trustee Fees

Professional or corporate trustees typically charge a fee based on the value of the trust's assets. While these fees can be significant, many people find the cost worthwhile due to the quality of services, expert management, and potential for higher investment returns.

Important Actions to Consider:

• Evaluate Your Ability: Consider whether you are the best choice to serve as trustee. If needed, you can hire financial advisors to assist with managing your investments.
• Appoint a Co-Trustee: Adding a co-trustee allows them to become familiar with your trust and can provide a seamless transition if you're no longer able to manage it.
• Assess Your Trustee Candidates: Carefully evaluate potential trustees. Don't assume that the oldest adult child is automatically the best choice.
• Consider Professional Trustees: If considering a professional or corporate trustee, compare services, fees, and investment returns to find the best option.

Get Professional Help Choosing Your Trustee

Choosing the right trustee is a critical decision for ensuring your trust operates as intended. We can help you select, educate, and support your successor trustees to ensure they can fulfill your wishes effectively. Contact us today for expert guidance on managing your trust.