Three Tips For Selecting A Trustee

Are you in the process of creating a trust and need to identify a person as the trustee? This is the person who is in charge of holding onto assets for the trust where the assets they are holding, and the assets do not necessarily need to be owned by the trustee. The trustee essentially safeguards those items in the trust for the beneficiaries. Here are some tips for selecting a trustee for your trust. 

Consider The Assets In The Trust

The first thing that you should look at is what kind of assets that you are putting into the trust. Is it mainly money and property, or is it more complicated with stocks and investments that need to be managed? The complexity of the assets in your trust can help determine who you select since a basic trust could be handled by a friend or family member that is not the most financially savvy person. 

Consider Who The Trust Will Be Going To

You also need to look at the line of succession of who will inherit the trust after you were to pass away. It may be the most logical thing to make an heir a trustee since they will eventually be inheriting the trust anyway. This can become complicated if the person inheriting the trust is a minor. 

If a minor is set to inherit the trust, it may be best to temporarily assign something else that is capable of handling the trust until the minor turns 18 years old. 

Consider Who Is Good With Money

One of the most important things to consider is if the person that you are trusting with assets in the trust is good with money. Are they the type of person that thinks about financial decisions carefully, or do they make decisions on a whim that later end up not being a good choice? While it may go without saying, you want a person to be the trustee that you feel is going to be responsible with the assets that are legally in charge of. While it may be tempting to use a close family member, you know their relationship with money better than anyone and can use that as a deciding factor.

If you are having trouble selecting somebody to be the trustee of your trust, reach out to a company like Pendleton Square Trust that provides a trustee service to help manage it all for you.