Should I Select Co-Trustees?
For many individuals, a thorough estate plan consists of several trusts. Trusts provide many benefits such as versatility, control and both tax and probate avoidance sometimes. There are a large variety of trusts that you can select from when you choose to produce a trust, all trusts require the same fundamental aspects to start– a beneficiary, a trustee and funds.
When choosing who to appoint as trustee, you may think about appointing co-trustees, however is this really a wise idea? Just you can make that decision, there are some things you might wish to consider prior to making the decision.
Estate planning rules generally enable you to name anybody you wish as trustee and do not limit you to calling just one trustee. For this reason, people often consider calling more than one trustee. If, for instance, you have more than one child you may be concerned that calling one child as trustee will create a family rift. While calling two children may avoid this, it can result in conflict within the trust itself. When there are two trustees that can not concur with each other, crucial choices might wind up in a deadlock. If you feel that it is essential to include more than one trustee in your trust, consider calling three instead of 2 so that decisions can be made by a bulk vote. Or designate a trust consultant, someone who is independent and can be hired to break a tie vote and perform many other functions where self-reliance is desired. This is likewise referred to as a special trustee.
Of course, another option is merely to select one neutral trustee instead of including family members. This might be a lawyer or an expert trustee. By appointing a neutral trustee, not only do you prevent producing dispute within the family, however you have somebody who is not emotionally interested in the result of trust choices supervising those decisions. This avoids both dispute within the family and a conflict of interest with any decisions made relating to the trust itself. Make sure to speak with your estate planning lawyer prior to you make a decision concerning who to designate as the trustee, or co-trustees, of your trust.