Trusts for Children, Part 3 – Whom Should I Choose As Trustee?

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The First Step

Congratulations on taking the big step to ensure that the young ones in your life are cared for into the future, considering creating a trust for children.  We are sure that this will give you peace of mind and security.  Keep reading to learn more about what a Trustee is and who you should choose.

Whom Should I Choose as Trustee and What Do They Do?

You should choose someone who is good at managing money and who is also good at paperwork.  This person is responsible for investing, taxes, distributions, responding to requests, providing annual accountings to the beneficiaries and guardians, and other similar duties.  It is a big task, and requires organization, dedication, and the willingness to do the job.  They can be paid for their time and expenses to manage the trust, but even with payment, it can be a lot for someone to do.

Don’t Choose the Same Person as the Guardian

We also recommend that you do not choose the same person who will be the guardian for your children.  Even if they have the best of intentions, it’s easy for a guardian to reimburse themselves more than is wise if they do not have someone else looking it over too.  If you have a separate guardian and trustee, then the guardian will review the trust accountings every year to ensure that everything is being correctly handled, and the trustee will ensure that the guardian isn’t getting more than is wise.

Choosing Family, Friends, or Professionals

You may be fortunate enough to have a family member who has the skills necessary to be a trustee.  If you don’t have a family member, consider a friend.  You will need at least two names—a primary and a backup.

If you do not have anyone who you believe has the capacity to be a good Trustee,  that’s ok.  We have a number of professional fiduciaries whom we work with often and trust.  There is a cost for professional fiduciaries, but it is often well worth that cost for reliable and accurate money management.

Learn more about professional fiduciary services here:

 

Learn More About This Topic

There are far more details and possibilities of what a trust can do for you and your family.  Are you ready to get your trust for children written?  Contact us today to schedule a consultation with an attorney for confidence in your future.

There is far more to learn about trusts for children.  See the following continued series for more information:

Part 1: How Does a Trust Work?

Part 2: Distributing Trust Money

Part 4: Leaving Instructions for the Trustee

Part 5: How Long to Leave the Funds in Trust

Part 6: What if a Child is Disabled or Addicted?

Part 7: What if I Want to Change My Trust?

 

Want to learn more?  Check out these other resources.

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