For many, the idea of planning an estate can be overwhelming. While most assume they only need a will, this is not always the case. Trust funds can be incredibly beneficial estate planning documents. However, if you’ve considered creating a trust fund, you’ll also need to consider who you will appoint as the trustee. If you’re unsure what the function of a trustee is or what to consider when naming someone for this role, you’ll want to keep reading. The following blog and St. Louis wills & trusts lawyers can help you navigate these complex matters so you can have peace of mind for the future.
What Is a Trustee and What Do They Do?
When you create a trust fund in Missouri, you must appoint someone to serve as the trustee. This entity is responsible for managing and overseeing the assets held in the fund on behalf of the creator, also called the grantor. It’s important to understand that when appointed to this role, the trustee has what’s known as a fiduciary duty. This means they are legally obligated to act in the best interest of the trust fund and adhere to the wishes of the grantor.
Common responsibilities of a trustee include, but are not limited to, the following:
- Accounting for the assets in the trust and keeping them separate from other funds and property
- Keeping detailed records of all transactions involving the trust
- Communicating with beneficiaries regarding the trust and assets
- Distributing assets in accordance with the terms and conditions explained in the trust
- Investing assets as per the wishes of the grantor
How Should I Pick Someone for This Role?
You’ll find that depending on the trust you establish, you may be able to appoint yourself as the trustee. However, it may not be in your best interest to appoint yourself as the trustee of options like irrevocable trusts. Similarly, if you appoint yourself to this position, it’s in your best interest to name a successor trustee who will assume the responsibilities in the event you pass away or become incapacitated. As such, understanding what to consider when appointing someone to this role is critical to ensure you can best protect your assets and beneficiaries.
The trustee of a fund will assume a considerable amount of responsibility. That’s why choosing someone trustworthy and responsible is critical to ensuring the terms and conditions of your trust fund are carried out. You should also note that you may want to appoint someone with the time and capability to handle this task. For example, your first choice may be your daughter, but if she is focused on raising a family, she may not have the time to dedicate to your trust fund.
Even if you appoint someone as the trustee, you should name a successor. As mentioned, this person can take over the role of the trustee, whether yourself or another person, in the event of death or should the person not want to assume the responsibilities.
If you’re ready to create a trust fund, doing so under the guidance of an experienced estate planning attorney from the Stobie Family Law Group is critical. Our team can assist you in creating a trust fund that reflects your best interest while also helping you pick a trustee to manage the fund. When you’re ready to plan for the future, contact our team to get started.
