A trustee is an estate administrator. When you create a revocable living trust, you can act as the trustee while you are living. Ultimately, you are creating the trust to facilitate asset transfers after you die. To make this happen, you name a successor trustee in the trust declaration. The successor trustee would administer the estate after your passing.
Choosing a Successor Trustee
When you think about a successor trustee, you may start to scour your mind for people that you know who may be able to handle the role. You can go this route, but you should keep certain things in mind.
For one thing, longevity is a factor. Will the successor trustee be alive and well after your passing?
You also have to consider conflicts of interest and tender feelings. To provide an example, one of the benefits that you gain when you use a living trust is the ability to provide measured distributions over an extended period of time.
If you want to make sure that the beneficiaries do not spend their inheritances too quickly, you can instruct the successor trustee to mete out the resources little by little. You do not have to allow for lump-sum distributions.
Most people will give the trustee the discretion to distribute larger sums when certain circumstances exist. If the trustee is someone that is a family member or close friend, he or she could be swayed by spendthrift beneficiaries.
Many people will go in a different direction. You can use a corporate trustee, like a trust company or the trust section of a bank. There are a number of clear benefits that you would gain if you use a corporate trustee. There would be no longevity concerns, and you could be certain that the trustee would follow your instructions in an emotionally detached manner.
Free Report on Trust Administration
We have prepared a free special report on the trust administration process. This report will provide you with a great deal of information if you would like to learn more about trust administration and the role of the successor trustee.
You can access this report free of charge at the present time, so there are no risks and no obligations. To get your copy of the report, visit this page and follow the simple instructions: Trust Administration Report.
To Schedule a Consultation
If you are interested in the possibility of working with our firm after learning these facts, please select our “Workshops” tab to RSVP for a free estate planning workshop. At that workshop you will be offered a free one-hour consultation with an attorney. www.collinslawgroup.com/seminars/
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