When naming the trustees to administer a trust, the first people who come to mind are beloved family members. Some people stop there and appoint one of those family members, but they really should think twice before doing so.
When creating trusts, most people are aware that they should appoint someone trustworthy to be the trustee. Most people believe that one of their family members is trustworthy enough to tackle the job.
They are most likely correct about that.
However, there are other considerations to take into account when choosing a trustee and there are a few good reasons why you should consider someone who is not a member of your family.
The Wills, Trusts & Estates Prof Blog recently listed some of those reasons in an article titled "Why It Is a Good Idea to Choose a Non Family Trustee."
The list includes:
- Time - Being a trustee can require a big commitment of time that can be burdensome on family members who have families and jobs of their own.
- Personal Liability - If something goes wrong with a trust, the trustee might be held personally responsible to make up any losses. It is not always a good idea to open up that possibility for a family member.
- Family Disputes - It is not unusual for the beneficiaries of a trust to come into conflict over trust management with the trustee. It can easily become a family dispute that spills over into other areas of life.
As you can see, there is more to the decision of selecting a trustee than one would think.
Contact a Cincinnati estate planning attorney for some ideas appropriate for your circumstances.
Remember: “An ounce of prevention is worth a pound of cure.” When making your estate plans or when probating an estate or administering a trust, do not go it alone. Be sure to engage a Cincinnati estate planning attorney.
For more information about estate planning, probate or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526).
Reference: The Wills, Trusts & Estates Prof Blog (June 10, 2015) "Why It Is A Good Idea To Choose A Non Family Trustee."