When you create a living trust, you need to name a trustee. If it’s a revocable trust, you can name yourself as the initial trustee to keep full control of the assets. This means you will be both the settlor and the trustee. Then, you will choose a successor trustee who will step in and take over if you become incapacitated, die or resign.
If it’s an irrevocable trust, which means you transfer direct ownership of assets to a trust, it’s vital to name someone else as your trustee when you draft and sign the agreement.
Here are two tips for choosing a trustee:
Consider the qualities they possess
A trustee should possess certain qualities to serve as expected. These include willingness to serve, trustworthiness, integrity, impartiality, organizational skills and financial acumen. It’s also important if a trustee lives nearby, as it can make work more manageable.
Considering these qualities helps you choose someone who can manage assets according to your wishes, keep adequate records and treat all beneficiaries fairly. If you choose co-trustees, they don’t need to have the same personal traits but should possess qualities necessary to serve competently.
Help them understand the goals of your estate plan
Ensure your chosen trustee understands your core values and the goals of your estate plan. Thus, after the initial discussion in which you asked them to serve, have ongoing conversations with them.
You should also introduce them to the professionals on your estate planning team, including your attorney, financial advisor, accountant and tax professional. This way, they can easily access professional help. Moreover, you can write a letter of wishes explaining your goals and intentions.
In Connecticut, you can choose a family member, friend, professional or corporate entity as your trustee. Get more information to choose a suitable party.