If you’ve considered establishing a Trust Fund, there’s no time like the present to start planning! However, one aspect of creating a Trust Fund many don’t consider beforehand is appointing someone to serve as the Trustee. This is an important role and integral to the integrity of your Trust, so you’ll want to know what to look for to choose the best option. The following blog explores these matters in further detail, as well as the benefits of connecting with a Medina County, Ohio Trust preparation lawyer who can help you achieve peace of mind for the future.
What Does a Trustee Do?
The Trustee of a Trust Fund has a considerable number of responsibilities and duties when they are put in charge of managing a Trust. Essentially, the main role is to act in accordance with the terms and conditions of the Trust as established by the Grantor, or creator. This includes dispersing assets to Beneficiaries and making investments on behalf of the Trust. In some instances, the Grantor may give the Trustee discretion to disperse assets. If this is granted, property distribution must be done in good faith.
In addition to dispersing assets in accordance with the Trust or at their own discretion, a Trustee must also keep records of all transactions related to the Fund, manage and maintain any property held in the Trust, and file necessary claims, among other important responsibilities.
What Should I Consider When Appointing Someone?
As you can see, a Trustee has several important tasks and responsibilities they must carry out, meaning this is not a decision you should make lightly.
Generally, the only requirement for someone to legally serve as a Trustee is that they are over 18 and of sound mind. However, just because you can appoint virtually anyone doesn’t mean you should. For example, you may love your brother, but if he was fired from his job for embezzling funds, it likely isn’t a good idea to allow him to manage your funds.
As such, you should ensure that your choice is someone who is trustworthy, responsible, and has financial literacy. In addition, they should have the time necessary to take on this responsibility in addition to other duties they must manage in their life, like a job or family.
Choosing the right Trustee can be an incredibly complicated matter. Unfortunately, many are unaware of how complicated this process can be, which can lead to an unfavorable outcome. As such, it’s in your best interest to connect with an experienced estate planning attorney.
At Krause Law, we understand how important securing your future is, which is why we will do everything in our power to help guide you through this process so you feel confident that your assets and Beneficiaries will be cared for. If you’re ready to establish your Trust, contact the team at Krause Law today to learn how we can assist you through these matters.
