Whether you are reviewing your existing trust or creating a new trust, understand the important role that a trustee plays not only in handling trust matters but also in providing for and protecting your loved ones.
What is a trust?
A trust is an agreement between an owner of accounts and property (trust maker) and another person (trustee) who agrees to manage the accounts and property on behalf of a third party (beneficiary). In most situations, there is a written document, called a trust agreement, that lays out the specific instructions or rules that govern the trust relationship.
What is a Trustee?
This person is a trusted decision maker who is tasked with handling all matters that relate to your trust. Depending on the type of trust, you could be the trustee in the beginning and need someone else to act as trustee only when you are unable to manage the trust, or you could select a trustee to act immediately.
Different Types of Trustees
When creating an estate plan, there are several types to consider. An initial trustee is the decision maker that immediately starts managing the trust’s accounts and property. You may choose to be the initial trustee if you create a revocable living trust. However, for some types of irrevocable trusts, you will need to select someone else to be the initial trustee.
The successor trustee is the next in line to manage the trust. This person may need to act because the initial trustee becomes incapacitated, dies, or steps down from their role.
You could choose to have one trustee handle the entire trust. You could also choose to name a separate trustee for any sub-trusts that you later create. For example, you may name your children as the trustees for the sub-trusts that are created for their benefit at your death. In this instance, there may be several trustees acting once the sub-trusts are created. However, they will only be responsible for their separate trust and will have no control over other sub-trusts that have their own trustees.
What a Trustee Does
- Manage accounts and property owned by the trust or sub-trust.
- Keep the trust beneficiaries informed about the trust.
- Act as a point-person for trust matters.
How to Select a Trustee
While it may be advantageous to be financially savvy or have a background in tax, law, or finance, they are not required qualifications. When considering potential trustees, we recommend looking for someone with following qualities:
- Ability to ask for help when needed.
- Be detail oriented.
- Stay organized.
- Demonstrate good communication skills.
- Follow rules.
About Skvarna Law Firm in Glendora and Upland, California
Let a skilled attorney assist with your estate plan. So, contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. Therefore, we provide legal services for individuals living in San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
