Eric applies his passion for learning and problem solving in his role as a Vice President and Client Advisor at Glassman Wealth. For Eric, an important aspect of solving problems for clients is having the right tools and applying them in a way that provides positive outcomes for them and their families.
Choosing the right trustee for your estate is a decision that helps shape your legacy. It’s not just about paperwork or legal jargon or checking boxes off a list; it requires trust, foresight, and the human touch. That’s why, at Glassman Wealth, we encourage our clients to take that decision as seriously as we do. Let’s look at how to pick a trustee who will act with integrity and care.
Understanding Trustee Duties
Your trustee, whether stepping in upon your passing or managing a living trust, takes on the immense responsibility of carrying out your wishes and stewarding your hard-earned assets. Trustees must manage investments, distribute assets, and sometimes take on special-needs considerations. When selecting a trustee, then, start by considering someone who can handle the complexity and make thoughtful decisions.
Competence and Trustworthiness
Here’s the thing: Trust isn’t an afterthought here. It’s the foundation. While it might feel natural to lean toward a family member, pause and reflect. Is this person truly responsible and independent enough to make unbiased decisions? Financial acumen is a plus, but more crucial is the ability to stay the course under pressure—an essential consideration in choosing a trustee.
» Glassman Pro Tip: Remember, every choice a trustee makes must benefit the trust and its beneficiaries. Every trustee should therefore be a blend of intelligence and integrity, of capability and reliability. Your dedicated team of Glassman advisors can be a valuable sounding board in your selection process.
Independent or Corporate Trustee
Emotion can cloud judgment, and this is where an independent trustee might shine. Professionals like attorneys, accountants, and financial institutions bring not just experience but a level of detachment that can be invaluable. They’re seasoned in fiduciary duty, which is exactly what you need.
But be aware: This route comes at a cost. Professionals bill by the hour, and depending on your estate’s complexity, those bills can add up. Plus, an independent trustee might not grasp the nuanced dynamics of your family, which can be both a blessing and a curse. So, weigh these factors carefully when exploring your options.
Continuity and Stability
Trustee longevity matters. You don’t want your beneficiaries left in the lurch if the trustee can no longer serve. Two strategies can mitigate this risk.
First, preselect a successor trustee. This ensures a seamless transition should the original trustee step down. Apply the same rigorous criteria to this successor as you did with the original trustee. Second, consider appointing co-trustees. Pairing a family member with a professional can blend personal insight with professional expertise. This approach could offer you the best of both worlds.
» Glassman Pro Tip: If you decide to go with co-trustees, a well-drafted trust can clearly outline their respective duties, including investment management, recordkeeping, and beneficiary care. As always, your Glassman team will be with you in this effort.
Legal and Tax Implications
Don’t overlook the legal and tax angles. Different states have different laws, and the tax implications of your trustee choice can be significant. Consult an estate attorney to navigate these waters; their specialized knowledge is vital.
Think of your trustee as the linchpin in your estate plan, a pivotal part of your estate planning journey. By weighing competence, trustworthiness, impartiality, and continuity, you can make a decision that brings peace of mind and security for the future. So, take your time, consider all angles, and make a choice that will stand the test of time.
At Glassman Wealth, we understand the significance of these decisions. With a deep respect for your family’s dynamics and a commitment to personalized service, we specialize in guiding you through the process of selecting a trustee. Whether you’re establishing a trust for the first time or reevaluating your current arrangements, our team is here to provide clarity and confidence.