How do I select a Trustee?
A trustee is obligated to manage property according to the terms of the trust for the benefit of another individual. When selecting a trustee, you have two choices: you may choose a corporate trustee, like a bank or trust company, or you can choose an individual, like your sister or friend. Whether you choose a corporate trustee or an individual usually depends on the size of the trust corpus and the personalities and personal circumstances of your beneficiaries. For example, if you think the beneficiary will hound the trustee for money every two weeks, you may want to select a corporate trustee, which has systems and controls in place to deal with demanding people. It is also important to remember that a trustee can hire professionals to assist them in meeting their responsibilities. Thus, an individual trustee can hire a CPA or a stock broker to help them with distributions and investments.
Regardless of whether you select a corporate trustee or an individual, you want to be comfortable with your selection. If you select an individual, you should select someone with common sense so that if they notice something is wrong, they can seek help to fix the situation.
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