Creating a trust fund for a minor or someone who will require lifelong care takes a great deal of forethought and planning. One major factor is finding a trustee who can manage the account and make decisions that remain in the best interests of the benefactor.
U.S. Bank notes that any trustee must obey the rules set out in any created trust and cannot act outside the boundaries of the document. As such, choosing a trustee is not always a simple decision, but you can consider a few factors as you plan.
1. Choose a trusted family member
Selecting a family member to oversee your trust has several advantages. This individual, whether you choose your spouse, a parent or a close sibling, already understands your position, especially if you plan to form the trust for a child who needs consistent medical care. remember to keep communication open and honest within your family to avoid feelings of anger and misunderstandings regarding your choice.
2. Choose a corporate trustee
Trust fund companies and banks handle trustee duties in much the same way an individual would, but with a few additional advantages. When you choose a corporate trustee, you can rest assured it has the knowledge and tools to handle the trust fund almost seamlessly and abide by the terms laid out in the trust document.
3. Make your choice with the future in mind
When you choose your trustee, remain mindful of the future. Will your benefactor’s situation change? Is your trustee at an age where he or she will not enter their senior years for some time so they make good choices for your benefactor? You may want to ask yourself these questions before funding the trust.
You may also combine these choices and name a co-trustee to create a system of trust checks and balances.