4 Tips To Help You Select a Reliable Trustee

If you’re setting up a trust to manage your assets, then you’ll need to appoint at least one trustee. A trustee is an individual or organization responsible for holding and managing your trust assets on behalf of your beneficiaries. As you can probably guess, it’s important to pick someone or an entity that you can trust to make sound decisions and act in the best interests of your beneficiaries and wishes. In this guide, we’ll cover some essential tips to help you select a reliable trustee.

Determine Professionalism, Impartiality, and Expertise

The most important qualities in a trustee are professionalism, impartiality, and expertise. A reliable trustee will act impartially, without any conflicts of interest, ensuring fairness among beneficiaries and adherence to your wishes. If they are professional, they will handle your trust’s administrative tasks diligently and competently. Finally, expertise, particularly in managing financial matters, will help them make informed decisions, invest wisely, and safeguard the trust’s assets.

Trusting someone who meets these standards can save your beneficiaries a lot of potential hassle in the future.

Consider Individual and Corporate Trustees

An individual trustee might be someone you personally know and trust, such as a family member or friend. They are likely to have a deep understanding of your intentions and personal dynamics, which are appealing qualities in a trustee. However, they are much less likely to be impartial and might lack legal expertise and savvy.

On the other hand, a corporate trustee, such as a bank or a trust company, can offer professional management and continuity. They possess the resources and expertise to handle complex assets efficiently and impartially. However, there is less of a personal element, which can be a downside for some people.

Regardless, both options have their merits. Your job is to consider what aligns best with your needs and the complexity of your trust.

Add Safeguards, Such as Co-Trustees or Trust Protectors

A single trustee doesn’t have to be the be-all and end-all of your trust’s management if you don’t want them to be. This doesn’t mean it’s okay to lack confidence in your trustee because choosing a reliable individual for the role is always the priority. However, you can add co-trustees or trust protectors to create a system of checks and balances.

These safeguards are simply extra layers of assurance. Co-trustees can share responsibilities, offer differing perspectives, and hold each other accountable. This can be particularly useful in complex or large trusts.

Trust protectors, meanwhile, have the authority to remove or replace trustees if circumstances change or if the trustee isn’t fulfilling their duties. Consider how trust protectors can benefit estate planning to see if these professionals are the right partners for your situation.

Listen to Your Gut

The tips we just reviewed entail the main considerations that will help you select a reliable trustee. However, though you should not decide based purely on instinct, it’s okay to let it influence your decision. If you have concerns about a trustee candidate, despite them meeting all technical requirements, give the doubts serious consideration. A decision that feels right will give you peace of mind in your choice. As the role’s name indicates, trust is the foundation of this relationship, and your instincts can serve as a reliable guide.