Estate planning is a family affair. Not only from the standpoint of establishing a pathway for inheritances but also from the standpoint of selecting the right family members to manage assets and execute your plan.
Trusts are an effective planning tool to manage, grow, and distribute assets within your estate plan. One of the vital aspects of effective planning is choosing the right trustee(s) to manage the trust and the assets held within.
So, how do you manage the emotions and relationships within your own family during that selection process? Our team takes a personalized approach to this process by ensuring our clients make a selection that won’t cause strife among their loved ones.
Will Your Choice Foster Resentment?
One of the most common options for parents will be one of their children. Even if you default to the oldest child, you have to ask yourself if the choice will cause resentment among other siblings.
This resentment doesn’t just put the integrity of your familial relationships at risk but can also lead to mismanagement of your estate. You trust your kids today, but if resentment snowballs to something much bigger can you trust them to still carry out your best wishes?
The right choice will keep your family together and ensure your plan is executed as you intended it to be.
Are There Any Universally-Respected Family Members?
Most families have that one aunt or uncle who everyone loves and respects. Do you have siblings of your own that you are confident can handle trustee duties without disturbing the peace within your family?
This can be a good alternative to riskier options, but this choice itself comes with some risk. The age of your trustee matters as you don’t want them to predecease you. That leads up to…
Do You Have a Succession Plan?
Choosing a trustee is not as simple as naming one person and moving on. We frequently discuss the unpredictability of life with our clients as estate planning is intended to account for exactly that.
So, do you have a plan if your chosen trustee predeceases you? We advise our clients to have at least three people in a line of succession for roles like trustees. If you go with an older trustee like a sibling of your own then consider younger options in the succession plan. A great plan that we implement with many of our clients is selecting a licensed professional fiduciary for the third option – this way, if the previous trustees don’t want to (or can’t) serve, the professional can step in. Ideally, your succession plan will be far less contentious than an HBO show.
If There’s Hesitation, Let Us Know
The team here at the Law Offices of Tyler Q. Dahl will work closely with you to pick the right people for various roles within your estate (trustees, healthcare proxies, executors, guardians, etc.). If you have any hesitation at all, get in contact with us and we can work through your concerns to protect your legacy.
Dahl Law Group
