Questions to Ask When Choosing a Trustee
Cincinnati living trust attorneys will help you with the technical process of creating a trust so you can ensure you have a trust document that accomplishes your goals and so you can ensure that you have chosen the right type of trust for your particular situation. The creation of a trust can help you to provide more protection for your assets and for your loved ones, so many people should strongly consider working with an experienced attorney to determine if creating a trust is right for their needs.
When you are creating a trust, you will have many important decisions to make and Zimmer Law Firm can provide you with the insight and information that you need to make informed choices. For example, one of the key things that you will need to decide is who to select as your trustee. There are a few big questions that you should ask when you are selecting a trustee including some of the following queries.
Can You Be Your Own Trustee?
If you are making a living trust, it is common for you to serve as the trustee when you initially create the trust. Under these circumstances, you would name a backup trustee who can take over the management of your assets if something happens to you and who can serve as the trust administrator throughout the trust administration process that will be used to facilitate the transfer of wealth after you pass away.
However, if you make an irrevocable trust with the goal of protecting your assets from being lost due to circumstances such as an illness or injury that necessitates you move to an expensive nursing home, you will need to give up control over your assets held in the trust. This means you will not be able to serve as the trustee if you want the trust to accomplish your desired aims.
Is the Person You Are Choosing Trustworthy?
Whether you are selecting a backup trustee or choosing a trustee who is going to immediately be put in charge of managing trust assets, you want to ensure that the person who you name as your trustee is going to be responsible and reliable. The trustee has a fiduciary duty, which is the highest duty owed under the law, so the trustee could face legal consequences for failing to fulfill obligations. However, taking a trustee to court for breach of fiduciary duty can be costly and stressful and is something that you want to avoid. As a result, you should try to ensure that you have chosen someone who is reliable enough that they will fulfill their obligations in an appropriate way.
Is Your Potential Trustee Willing to Fulfill this Role?
Serving as a trustee can require a lot of work. Before you select someone to fill this role, it is a good idea to make certain that the individual you are considering is actually willing to take on the responsibility. And, because circumstances change and your trustee may be willing to take on the role now but may not want the obligation in the future when you actually become incapacitated or pass away and need the trustee to take over, you should also consider naming a backup trustee.
Is Your Potential Trustee Able to Fulfill this Role?
Trustees have to be able to manage trust assets appropriately in order to protect the wealth that you have put into the trust. Depending upon the type of assets transferred into the trust and the level of hands-on management that may be needed, managing trust assets could be a complex process that requires financial knowledge or other advanced skills. You want to make sure the person who you are selecting to manage trust assets is up to the task.
Getting Help from Cincinnati Living Trust Attorneys
Cincinnati living trust attorneys at Zimmer Law Firm will assist you in fully understanding exactly what your trustee will need to do and what the role of the trustee will be in managing your trust assets. With a comprehensive understanding of what trustees need to do, you can make an informed choice regarding who is the best person to serve as your trustee. Our firm can then help you to put together a trust document to give the trustee the appropriate power to manage and protect your assets.
To find out more about the many ways in which our firm can help you with all aspects of the trust creation process, join us for a free seminar. You can also give us a call at 513-721-1513 at any time to get assistance with creating your trust.