In establishing a trust, you have to consider who you want to oversee the trust and protect your assets and legacy. When it comes to trusts, you have to appoint a trustee.
According to the U.S. Bank, choosing a trustee may be one of the most important financial decisions.
How to choose an individual trustee
Most people choose a close friend or family member to oversee the trust. One of the main benefits of choosing someone close to you is you can trust him or her with your estate. He or she may know your beneficiaries personally and knows your wishes. Additionally, he or she may know the needs of the beneficiaries. For example, if the trustee oversees purchases for the beneficiary, he or she can use better judgment than an objective party.
Even if you trust another person, you need to think carefully about your decision. Your trustee should be someone who has financial knowledge, management skills and time to dedicate to the position.
How to choose a corporate trustee
You do not have to choose an individual as your trustee. If you have a complicated estate plan, you may have more luck with a corporate trustee. Corporate trustees have resources and more understanding of fiduciary requirements than most average people do. Corporate trustees do not practice bias either. You may find close friends or family members have more difficulty staying objective.
There are some scenarios where you may want to consider more than one trustee. You can choose two individuals or one individual and a corporate entity to work together.