When establishing a trust, it’s crucial to select the right trustee for the job. A trustee is someone who handles and distributes assets as well as files any taxes for the trust.
Some grantors choose to hire a professional trustee, while others opt to enlist a family member. Read the pros and cons of both below.
Advantages and disadvantages of professional trustees
A professional trustee offers an objective perspective, which comes in handy when managing day-to-day tasks and solving problems. Also, they possess years of experience in their field, enabling them to assist grieving family members and other loved ones.
Since a professional trustee isn’t related to you, they have no personal connection to your family. Therefore, situations requiring empathy would be difficult for them to handle due to having an impartial point of view. Moreover, they could charge fees taken from the trust, leaving less money for your beneficiaries.
Advantages and disadvantages of relative trustees
Choosing a relative to serve as a trustee may give you peace of mind because you know their personality, plus they’re more likely to have better insight into family dynamics. If you have more than one adult child, you can divide the work among them so one individual doesn’t have to juggle several tasks.
However, some family members lack the knowledge and training to handle the intricacies behind trusts, and that could put your assets at risk if they don’t know what they’re doing. Furthermore, they might not have the time to serve as a trustee due to other obligations.
Choosing a professional or a relative as a trustee depends on your preferences and situation. Do you want to know more about selecting the right trustee to carry out your wishes? Then reach out to experienced legal guidance to help you explore your options.