In 2022, over half of Americans had no kind of estate plan set up. That includes a will, a living trust, or a living will. Many of them could benefit from stating their wishes for their assets after they pass.

One of the key components of an estate plan is to find the best trustee. This trustee is the person in charge of your assets until the time you have designated they pass it on to the beneficiaries.

Here’s your “choosing a trustee” guide and how to find a trustee you can rely on.

1. Trustworthiness and Integrity

As the name implies, the first and most important trustee criteria is that they’re someone you trust. The person you choose will handle your assets on your behalf and act in the best interests of your beneficiaries. They need to be someone with integrity and strong ethical principles.

Some of your options for trustee include:

• Wealth management and trust company
• Friends or family
• Trust attorney

A wealth management and trust company provides access to finance professionals and accountants who can handle your assets. They do so with the assistance of attorneys that can help them follow the law. 

Alternatively, you can trust a friend or family member to hold onto your assets until the designated time. A person might utilize this option if they have savings they only want their child to access when they come of age.

You could also hire a trust attorney or lawyer as your trustee. They can be a reliable option if you only want them to watch over your savings. A lawyer won’t have as much experience with investment opportunities.

2. Financial and Legal Acumen

One of the main benefits of a trust is to provide financial security for your children. A well-crafted one can reduce family conflict and avoid probate.

Managing a trust requires more than just a sense of responsibility and dedication. The person you choose may also need to deal with complex financial and legal matters.

It’s best to choose someone with financial literacy and experience with finance and law. It’s even better if they are familiar with all of your investments and assets.

You’ll also want the trustee to have the common sense to reach out to experts when needed. This may mean consulting professionals to make more informed decisions. Provide the contact information for attorneys or accountants you’ve relied on in the past.

3. Availability and Commitment

A trustee’s responsibility can take up much of their time, especially right after they take on the role. It may involve regular reviews, communication with beneficiaries, and handling taxes and trust records. You wouldn’t want to force this role on someone who is already spending all their time on their job or some other commitment.

Ensure whoever you choose knows this is a long-term commitment. Friends and family may not understand how much they’ll need to shoulder after you’re gone.

It’s for this reason you may want to choose a company or attorney to handle something complex, such as your investment portfolio. Alternatively, include instructions for your trustee to reach out to professionals for certain tasks. 

4. Relationship with Beneficiaries

You may want to hire a trustee who has a pre-existing relationship with your beneficiaries. Their relationship can smooth over the power dynamic and allow for an easier transition. However, personal relationships can also complicate matters, especially with family members.

Consider your family and how they would respond to the passing on of your financial matters. Are they the kind to work together and respect your wishes? Or do you expect confrontation?

If you expect conflict, it may be best to choose a neutral third party to avoid emotional bias. Professional trustees provide an impartial approach and can remain objective in their decisions.

5. Understanding Your Wishes

Two of the main types of trusts include a living trust and an irrevocable trust.

A living trust, or revocable trust, is one you control while you’re alive. It’s often used as a substitute for a will.

An irrevocable trust is one you can’t change after you’ve set it up. This kind is a good option if you want to set something up for your children or grandchildren. It protects the trust from other adults until the beneficiaries are of age to access it. 

The revocable trust requires you to name someone else as the trustee. This person is who manages your assets. You won’t require a trustee with an irrevocable trust.

Your trustee must understand and respect your wishes when it comes to your trust. It’s especially important if your trust includes complex instructions or a wide variety of assets.

6. Costs and Fees

Hiring a trustee comes with its share of costs, especially when you hire a professional. Trustees are entitled to compensation for their time and effort. The fees paid to them will depend on the complexity of the trust, the level of involvement required, and their background.

Individual trustees, such as a friend or family member, may not charge you for their services. However, you wouldn’t normally leave them a complicated trust or one that requires heavy maintenance.

More complicated trusts will need professional help. As such, they’ll often charge you more for their services. In general, expect them to charge a percentage of the trust’s assets or a flat fee.

It’s important to speak with your attorney when you set up your trust so you can know your options.

How to Find a Trustee You Can Rely On

If you’re still wondering how to find a trustee in your area, follow these reliable trustee steps. Consult with your attorney, talk to your friends and family, and research a wealth management and trust company. It’s best to know your options before making a decision.

Rhodes Law Firm, PC, has over 30 years of experience with estate planning and everything related in the Augusta, GA and Aiken, SC areas. We offer two convenient locations, online education videos, and online workshops. Contact us for more information and with any questions you may have.