In the process of creating any kind of trust, you will need to name the trustee, or a person responsible for managing the assets held in the trust and distributing those assets to your beneficiaries. Thinking through who you want to select as your trustee is important, because this individual will be responsible for keeping track of a lot of details.Â
The first important quality for a trustee is their ability to be impartial. A trustee must act in accordance with the terms of the trust and any state laws, so they must treat beneficiaries equitably. It’s also good to look for someone who has great communication skills since they will be the point of contact for beneficiaries when distributing assets from the trust.Â
The second key quality is trustworthiness. This person needs to be reliable, honest, and responsible. They should also feel comfortable taking on this kind of role, so a conversation with your potential trustee up front to clarify the role can help.Â
The third important quality is financial knowledge. Although your chosen trustee does not need to be a financial expert or a CPA, general financial acumen will serve them well throughout their time in this position.Â
Not sure what kind of trust to set up and want to walk through the pros and cons of various trust types? Our Pasadena estate planning law office is here to guide you through each step of the planning process so you feel confident about your plan capturing your wishes.Â
