Choosing a Trustee: Family, Friend, Lawyer, or Corporate

by | Oct 24, 2024 | Uncategorized

Choosing a trustee is an important decision that can significantly impact the administration/management of your trust. A poorly administered trust can have profound negative effects on the beneficiary’s health and financial well-being. Therefore, the selection of the trustee is crucial, and each option has its strengths and weaknesses.

  1. Family:
    • Pros: They may have a personal understanding of your wishes and values, and they are likely to be emotionally invested.
    • Cons: Family dynamics can complicate decision-making, and they may lack the expertise to handle complex financial matters especially matters related to eligibility for government benefits as well as tax implications of trust distributions.
  1. Friend:
    • Pros: A close friend may understand your personal wishes and goals and can be a trusted confidant.
    • Cons: Like family, they may lack the necessary financial and legal expertise, and their ability to remain objective might be challenged.
  1. Lawyer:
    • Pros: They often have legal and financial expertise and can navigate complex issues effectively.
    • Cons: Legal fees can be high, and they may not have the same personal connection to your wishes.
  1. Corporate Trustee:
    • Pros: They provide professional management and impartiality, ensuring consistent adherence to fiduciary duties. A corporate fiduciary is poised to handle large and complex trusts and has the legal, financial, and tax-related expertise needed to fulfill trust administration requirements such as maintaining eligibility for government benefits including SSI and Medicaid.
    • Cons: Not all corporate trustees are the same. Many do not offer a personal touch. At ATC, our team values a person-centered care model approach to trust administration. Assured Care Company and their team of care managers work closely with trust beneficiaries to determine their unique needs.

Consider the complexity of your estate, your relationship with the potential trustee, and their ability to manage the responsibilities involved. It’s often beneficial to consult with a financial advisor or attorney to help guide your decision.