There are many situations in which a trust would be the best option to leave money and other assets behind for children and other family members. In the case of an accident or sudden death, a trust can protect a grantor’s assets from creditors. In addition, a trustee can later preserve and manage those benefits so that the beneficiary received them in a prudent fashion.
Now, in all the terms mentioned above, which would most likely be the “X factor” in a trust agreement? It’s not the grantor, since he’s the one who chose to open a trust in the first place. And it’s probably not the beneficiary, as he was likely always lined up to receive the grantor’s assets.
All that leaves the trustee to being perhaps the most important party of a trust. The legal definition of “trustee” is: “The person designated in the Trust Agreement to take possession of the trust assets and manage those assets. He must also preserve and manage the assets according to the provisions in the Trust agreement.”
The trustee is so important because he needs to abide by the trust agreement and protect and distribute the assets accordingly. This job can be a bit more time-consuming than people give it credit for. There’s a whole lot of paperwork and billing associated with the task. Throw in familial issues such as physical custody and it could suddenly turn into a full-time job.
And that’s exactly why grantors should consider an impartial trustee out of the family. For one, it would make issues much less complicated concerning the distribution of assets. Grantors typically turn to a family member for a trustee, but there’s no guarantee that he has a family member both willingly and capable to do the job.
Professional consulting can help grantor’s pick a reliable and capable trustee. We understand the process and want to help people leave behind their assets exactly as they wish.
If you would like more information about trusts, contact us.