A trust is an important estate planning strategy that can help you add more privacy to the transfer of your assets and enable you greater control in determining how beneficiaries receive asset transfers. To structure a trust properly, you need to set aside time to think about who should serve in the role of trustee.
California law requires that trustees must be legal adults 18 years or older who are capable of managing their own affairs. This primarily means that they have mental competence to manage your affairs as well. Furthermore, the individual selected as the trustee of your California trust should not have any conflicts of interest with the objectives of the trust and must be willing to follow the administrative guidelines of the trust and uphold their fiduciary duty in managing it.
Trustees are typically appointed through legal documents known as a trust deed. This trust document fully outlines the trustee’s powers, duties, and terms of their appointment.
Family members are allowed to serve in the role of trustee in California, but it is important to think carefully about their ability to manage the trust efficiently and impartially. Keep in mind any potential challenges associated with conflicts of interest or family dynamics.
A trustee must manage the trust in accordance with state law and the terms set forth in the trust itself. This includes things such as accurate record keeping, fair and impartial distribution to beneficiaries, and appropriate investment of trust assets.
For further information about how you can approach this process and what to expect, set aside a time to speak with an experienced estate planning lawyer in Pasadena.
