For the average person in California, appointing a spouse, sibling or the eldest child as trustee is the automatic choice. However, what many do not realize is that the obvious choice may not always be the best one.
Defaulting to this option can lead to delays, conflict or even mismanagement of the trust. When you appoint a trustee, remember that there is more to consider than family ties, closeness or birth order.
How the wrong trustee can complicate your estate
Planning your estate is a complex process. You can appoint a trustee based on how much you trust the person, but at the end of the day, you want to appoint someone who can manage the demands of the role. Here are some reasons why you should not appoint a trustee “just because”:
- Family conflicts: You need to consider that choosing only one person can lead to resentment, jealousy and even accusations of favoritism.
- Lack of financial or legal skills: A trustee cannot just be trustworthy and honest. In reality, the administration of your estate will require accounting, paperwork and tight deadlines that only someone competent and capable will be able to manage.
- Emotional burden: Grief can overwhelm the family left behind, making them less effective in the role. In some cases, they might even refuse to begin the process.
You need to be objective when appointing a trustee. Here are the traits you should look for when evaluating your options.
What makes a good trustee?
Although it is easier to just go for the most convenient option, you should choose the most qualified individual. Always look for the following characteristics:
- Responsible and organized: They should be able to keep track of documents, meet filing deadlines and follow the distribution guidelines without fail.
- Fair and impartial: They should never favor any party over another.
- Financially literate: They need to have a basic understanding or money management and have the foresight to hire help if necessary.
- Willing to seek professional guidance: They never insist on handling matters they have limited knowledge of and are willing to work with professionals.
Remember that the distribution of your estate can go smoother if the trustee you choose is able to navigate the process without issues.
Protect your legacy with the right trustee
Appoint the trustee who is best for the role, not who you think “should” be. If you feel overwhelmed about your options, estate planning lawyers can help you make the right choice. Do not just check a box off your list, make sure you appoint someone who is up to the task and can help you protect your assets.