How To Select Your Estate TrusteeBefore you die, you may either make a will or bequeath your assets to beneficiaries through establishment of a living trust. In either case, you need to choose an executor of your will or an estate trustee, who will manage with responsibility all the affairs of your estate on behalf of the beneficiaries. This management of your estate you can impose on the trustee normally after your death or even in your lifetime. The chosen trustee will charge you a fee for his role in estate management that he does for you. Before you choose the trustee, it is important that you perform the selection with adequate care and focus your attention on the qualities considered important in him. Some of these qualities are described below so that it makes your work easier in making the selection from the available candidates shortlisted by you. The chosen trustee should ideally live as close as possible to the vicinity of your residence. This will facilitate performance of duties with efficiency and without undue time and expense in commuting. Always keep a reserve candidate in mind as a backup in case your first named choice dies before you do or does not discharge his duties responsibly. Another important quality in the chosen trustee is reliability. This quality will come in good use when important decisions are needed to be taken in regard to the sale of a foreclosure or other assets. This quality can also be important in dealing with financial or insurance matters related with the estate assets. Not only reliability, but sound judgment, skill, and honesty are other important qualities required in the chosen trustee. Fiscal responsibility is another important tenet required in the chosen trustee. Since the chosen trustee will handle a considerable amount of cash, it is important that he makes investments wisely on your/your beneficiaries' behalf with considerable acumen and responsibility. It is also important to go through a written agreement with the person you choose as the trustee. This will forestall any objections that the person may lodge later that he was thrust the responsibility without his agreement. It is also important to know whether the candidate would stay on in the job for a considerable period of time or whether he would like to move on. In case the candidate is not very forthcoming with his answers to such questions, it will be imperative to consider another candidate. Sometimes it may happen that a candidate may be earlier confident of handling the responsibility, but maybe five years on, his circumstances may change so much that he may want to opt out of the responsibility. To consider such an eventuality, you will need to put in the agreement the clause that considers the job as revocable. Some people may choose to give the job of the estate trustee to a professional trust company. This has advantages inherent in the experience that their staff has in matters related to taxation, investment, the filling of forms, and accounting expertise. |