As the owner of a Living Trust, you may like the control you have over the assets held in the Trust, as opposed to other options. However, as the Trustee, it’s necessary to understand that planning for the future is vital. If you fail to appoint someone to take over your Trust should you pass away or become incapacitated, someone whom you may not have wished to assume the role can be appointed by the courts. As such, taking the time to work with a Medina County, Ohio Trust preparation lawyer is critical to ensuring your wishes are met regarding a Successor Trustee. The following blog explores what you should know about making this choice.
What Is a Successor Trustee?
As the Trustee of a Trust Fund, your responsibilities include handling the assets in the Trust, filing taxes, and distributing assets according to the terms and conditions of the Trust’s creator. However, if you pass away and there is no one to assume the role, a Trustee may be named by the courts. Because this is not your decision, the entity appointed may not meet your requirements. As such, taking the time to name a Successor Trustee is critical to ensuring your wishes are met upon your passing.
Your Successor Trustee will assume the role and responsibilities upon your passing. Naming someone allows you to ensure the person who will fulfill the role is up to your standards.
What Considerations Should I Make When Naming One?
When naming a Successor Trustee, there are many things you will need to consider before appointing someone to the role. Generally, the most important thing to consider regards how responsible and trustworthy the individual you want to appoint is. Managing a Trust is a big responsibility, so choosing someone who can prioritize this is important. It’s also important to consider their own financial abilities. If your cousin, for example, was fired from their accounting job for fraud, they likely are not the best option for this process.
Additionally, you’ll want to ensure that the person is able to assume the role. If you have established a Trust for your young child, ensuring that the person you appoint would be able to assume the role of a Successor Trustee until your child turns 18 is necessary. As such, appointing someone older may not be in your best interest.
Why Do I Need a Lawyer for This Process?
Though choosing a Successor Trustee is a personal decision, it’s still imperative to connect with an experienced attorney during this process. They can help ensure the language used when appointing this individual is legally binding, so your wishes are met. Additionally, they can help you include terms and conditions in the Trust to compensate the Trustee for their efforts in managing your assets.
At Krause Law, we understand how important your Trust is to you, which is why our team will do everything in our power to help you achieve the necessary peace of mind regarding these matters. Connect with us today to learn how we can help you through these challenging times.
