Bay Area Estate And Tax Planning Law Firm

Choosing an irrevocable trust’s trustee

On Behalf of | Apr 11, 2024 | Estate Planning, Trusts |

If you’re someone with substantial assets in California, at some point, you may want to consider creating an irrevocable trust. An irrevocable trust can shield your assets from certain taxes and ensure that your beneficiaries are well taken care of after your passing.

One of the most crucial decisions in setting up an irrevocable trust is choosing the trustee. The trustee will be responsible for administering your trust, and selecting the right person for that job is critical to proper estate planning.

The responsibilities of a trustee

Whomever you choose as your trustee will be responsible for the management of the trust you establish. Depending on the size and complexity of the assets in the trust, that can be a significant task.

Some of the common duties of trustees include:

  • Filing all taxes associated with the trust
  • Maintaining real estate or selling it, depending on circumstances
  • Appraising assets in need of evaluation
  • Keeping records of the trust’s financial activities
  • Getting in touch with beneficiaries about any aspect of the trust that concerns them

Qualities to look for in a trustee

When choosing a trustee, first and foremost, you’ll want to choose someone you’re comfortable entrusting your most precious possessions with. Frequently, trustees are family members or lifelong personal friends or associates for this reason.

The trustee should be someone who can devote their time to a job that occasionally requires sizeable time commitments. Managing a single trust isn’t usually a full-time job, but it will require devoted management periodically.

You’ll also want to select someone with a degree of financial and legal acumen. That doesn’t necessarily mean hiring a professional, although some people do that. But you’ll want to choose a person who’s comfortable making decisions regarding significant assets and navigating the legal landscape of irrevocable trusts.

An irrevocable trust can be an excellent way to safeguard your assets after your passing, but correct management is essential. Selecting an excellent trustee to administer your irrevocable trust will give you the peace of mind of knowing that your beneficiaries will be cared for in the years and decades to come.