Choosing Your Trustee

---

Trust administration is a very technical and time consuming role with a large amount of potential liability and critical deadlines. With that said, a beneficiary, family member or friend may not have the skills, aptitude or time to properly and effectively administer the trust. Additionally, complicated family dynamics, relationships and conflicts of interest may make it impractical for a family member to effectively fulfill their fiduciary role as trustee.

With these factors in mind, estate planning attorneys often recommend independent trustees. An

independent trustee is an individual that serves as trustee in their personal capacity, as opposed to a corporate trustee (also known as a trust company). Because of the certainty of who the trustee will be and the avoidance of tricky family dynamics or conflicts of interest by corporate trustees managing the investments. Furthermore, independent trustees are generally less burdened by byzantine policies and procedures (often found in bank trust departments) allowing for more flexibility by which they can care for and maintain the wishes of the trust grantor to the benefit of trust beneficiaries.

Before making your final selection for your power of attorney and successor trustee, ensure that you have been diligent in your review and have carefully considered who would best manage your affairs should you become incapacitated and carry out your wishes as set forth in your trust document. Questions to ask yourself include:

• What training, credentials and certification does the candidate possess?

• Will the candidate be able to obtain and perform investment management, accounting, tax and

bookkeeping services for the trust to fulfill fiduciary responsibilities?

• Does the candidate have a good grasp of your estate plan, goals and objectives?

• Does the candidate have the experience to deal with specialized or unique trust assets?

• Will the candidate adhere to high standards and best protect the trust assets for current and future

beneficiaries?

• Will the candidate make objective decisions to administer the trust and treat beneficiaries fairly?

• Will the candidate be able maintain a neutral stance to act impartially between competing interests

of various beneficiaries?

• Will the candidate have the time to properly devote to the administration of the trust?

• Will the candidate be able to take quick and efficient action in trust administration?

• Is the candidate sufficiently younger than the trustor to outlive the trustor and fulfill their obligation?

• What measures are in place to ensure the security of sensitive and confidential client information

and data?

• What disaster recovery systems are in place should an emergency occur?

• Does the candidate maintain errors and omissions insurance?

• When are fees assessed? How are fees calculated?