You need to trust your trustee

On Behalf of | Sep 26, 2022 | Estate Planning

One of the many important decisions facing estate planners is choosing a trustee. Indeed, you must choose a Texas guardian, power of attorney designee, healthcare proxy, etc. Some may feel like the same person can act in all these roles, but that is rarely a practical or reasonable option.

The difference between a trustee and other designees

A stark difference between a trustee and other designees is time. No other designee acts perpetually. Yet, a trust can be long-lasting, helping build and maintain generational wealth. This is why your Buda, Texas, guardian may not be the best choice. Legally, there are extensive requirements that require specialized knowledge, in addition to several other skills, like investing, property maintenance, recording keeping, reporting, etc.

Impersonal and impartial

The trustee must be able to make impersonal and impartial decisions in the best interests of your beneficiaries. Even if you have a family member that works as a trustee, professional, it is this needed impersonal and impartial decisions making that takes them out of the running. For those that have a relationship with your beneficiaries, it may be hard to say no, or if there is some infighting, it may similarly be hard to say yes. This is why the appropriate trustee designation is outside your friends and family.

Tips on cost

When you begin your trustee search, the advertised fee is often the trustee fee. But, what you need is the comprehensive fee. Trustees that do not have internal brokers, property managers, etc. may have to contract with other professionals to fulfill their trustee duties. As such, there may be additional fees in addition to the trustee fee. To ensure the right decision, make sure the fees are for the same services.

Insurance and protection

Similar to cost concerns, research the trustee’s insurance and asset protection policies. After a lifetime of work, the last thing you want is to lose your trust assets to a lawsuit or insolvency. Your situation is unique, so consult with your Texas estate planning attorney on selecting a trustee.