Unfortunately, many people are unaware of the advantages of creating a trust fund, as they assume only the ultra-wealthy will benefit from establishing this kind of documentation. However, there are many benefits to creating a trust fund. As such, if you’re ready to begin planning your trust, there is one critical consideration you must make – naming someone to oversee the fund! If you’re unsure what to consider when you appoint a trustee, you’ll want to keep reading. The following blog explores what you should know about these complicated matters and why it’s in your best interest to connect with PA trust attorneys who can help you explore your legal options for these matters.
What is the role of a trustee?
When you create a trust fund, you must appoint someone to serve as the trustee. Essentially, their role is to manage and oversee the trust in accordance with your wishes. This means they must follow the instructions you have left as per the terms and conditions of the trust fund. A trustee has several large responsibilities they must adhere to when managing a trust fund. These include, but are not limited to, the following:
- Protecting the assets held in the trust
- Investing in the trust fund
- Acting in the best interest of the trust fund
- Keeping records of the trust fund
- Contacting beneficiaries
- Administering assets
What should I consider before I appoint a trustee?
When appointing someone to act as the trustee of your trust fund, there are a few things you must keep in mind. First, you’ll want to ensure that the person you choose meets the requirements in place. Generally, the only factors that determine whether or not someone is eligible to serve as the trustee are if they are over 18 and are of sound mind. Other than those two requirements, generally anyone can be selected to fulfill the role of your trustee.
However, just because anyone can be appointed doesn’t mean just anyone should be appointed. Being the trustee of a trust fund is a large responsibility, so you should only appoint someone you trust to handle this matter. For example, as the individual must handle many high-value assets and funds, appointing a cousin fired for embezzlement may not be ideal. Instead, you should choose someone responsible and loyal who has financial literacy and is a good communicator.
If possible, you should consider appointing another individual as well, just in case your first choice is unable to assume the role or must step down as your trustee. This allows you continued control over who should replace your trustee if you pass away before they step down or cannot assume the role.
As you can see, appointing a trustee can be incredibly complicated. That is why ensuring you connect with an experienced attorney from Friedman Schuman Layser is critical in these matters. Our firm understands how important appointing the right person is, which is why we will do everything in our power to help you feel confident in your decision. Connect with us today to learn how we can assist you when you’re ready to establish a trust fund.
