Similar to how you need to name an executor for your last will, you are required to enlist a trustee for your trust document. In short, this is essential in ensuring that your best wishes are met when the time comes that you are, unfortunately, no longer around to handle these affairs on your own. You should not name just anyone to serve as your trustee, but rather this decision should come after some deep thought and special considerations. So, with that being said, please follow along to find out who you should appoint as the trustee of your trust and how a proficient New York City trusts attorney at Zimmet Law Group, P.C. can help assure you are delegating this responsibility to the right individual.
What are the roles and responsibilities of a trustee?
A simple way to put it is that a trustee is the “middleman” between you (i.e., the grantor) and your designated beneficiaries. This is because they are charged with managing the trust’s assets until the time comes to distribute them to your beneficiaries, as you directed in the terms and conditions of your trust document. So, as far as managing goes, they are expected to meet the following roles and responsibilities:
- They must pay bills and taxes on the trust.
- They must monitor and adjust investments made with the trust’s assets.
- They must keep an accounting record of all transactions made with the trust’s assets.
- They must only take action with the trust that works in favor of the beneficiaries.
- They must always inform beneficiaries on any actions they take with the trust’s assets.
Who should I designate to be the trustee of my trust?
It’s in the name; you should make your trustee someone you trust to handle your personal and financial affairs. While trust is the foundation of this relationship, your designated trustee should also possess other favorable characteristics. Examples of such characteristics are as follows:
- They must have a pristine track record of handling their personal financial matters ethically and desirably.
- They must show their willingness to help you out and take on this very serious responsibility without hesitation.
- They must be in a mentally stable state, enough to be able to understand and manage the complexities of your trust.
- They must have an established relationship with your designated beneficiaries that is positive, stable, and clear of conflict.
- They must not already be a designated beneficiary of your trust or otherwise someone who benefits from the outcome of your trust.
To learn more about how to handle trustee designations, please get in touch with a talented New York City estate planning attorney from Zimmet Law Group, P.C. Better yet, schedule your initial consultation with our firm today.
