Picking the Right Trustee of Your Estate is an Important Decision
Our Brazoria County wills and trusts attorneys located in Lake Jackson outline some of the factors you will want to consider in picking the right trustee for your estate.
A trust is an important type of estate planning document and allows you to transfer funds to a third party for distribution upon death. In creating a trust, you will need to designate someone to act as trustee. Before making this important decision, there are a number of factors you will want to consider.
Texas Trusts and Trustees
Under the Texas Statutes, a trust is a legal tool that allows you to transfer title of property and assets to a third party, referred to as a trustee. During your lifetime, a trust can protect you in the event you are incapacitated, and it can help ensure Medicaid eligibility if proper provisions are included, offsetting the high costs of nursing home care. In the event of your death, a trust provides detailed instructions on how distributions are to be made.
In creating a trust, you will need to designate someone to act as your trustee. This means that they are in charge of controlling and managing your trust. Their primary duty is to administer the trust in a way that protects they best interests of you and the beneficiaries. This includes:
- Keeping an account of all trust assets;
- Maximizing trust assets through sound investment strategies;
- Filing tax returns and other legal documents as needed;
- Locating beneficiaries and making distributions according to your wishes.
Picking the Right Trustee
Selecting the right person to manage your trust is one of the most important decisions you can make. While many automatically name their spouse, children, other family members, or close friends, these often lack the knowledge or resources to do the job properly. Selecting a bank, a trust company, or professionals in the community is another option, but you want to be sure they are capable and worthy of your trust first. Kiplinger recommends asking yourself the following questions:
- In regard to family and friends: Do they have good judgment and the skills needed to act as a trustee? Can they put their own interests aside and act impartially? Do they have the time needed to devote to the task?
- In regard to accountants, estate planning attorneys, or other professionals: Do they have the experience and skill needed to act as a trustee? Have they successfully performed this task for others in the past? Do they understand your specific situation and the dynamics of your family?
- In regard to banks and trust companies: What do other clients say about their services? How much will their fees subtract from funds that should go to your beneficiaries? Are promised returns enough to make up for the potential risks? Can they meet your family’s unique needs?
Contact Our Lake Jackson, Texas Estate Planning Attorneys
Get the trusted legal guidance you need in picking a trustee. Reach out to the Cordoba Law Firm, PLLC today. To request a consultation, call or contact our Lake Jackson estate planning attorneys online.