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How to select the best successor trustee

On Behalf of | Jan 22, 2025 | Wills And Trusts |

Adults thinking about preserving their assets and qualifying for benefits as they age may decide to start a trust. There are many kinds of trusts that people can establish depending on their needs and resources. Funding a revocable living trust is a common estate planning choice that can give individuals enhanced financial protection and more control over their resources after their passing.

Typically, the people funding a revocable living trust serve as the initial trustee managing the trust. They retain control over their resources by virtue of serving as the trustee. This arrangement can work for years but has obvious limitations.

The trust may also serve as their main source of financial support later in life when they are vulnerable. To ensure that there is someone competent and capable of managing trust resources, those funding a revocable living trust typically name a successor trustee. How do people select the right candidate to take over trust management responsibilities after they can no longer perform that work?

Successor trustees should be responsible

Choosing a successor trustee requires the careful evaluation of friends and family members. Trustors often need support when making the choice, as they need to be as objective as possible.

They need to consider help, proximity and capabilities in addition to the dynamics of their relationship. The successor trustee needs to be someone who is responsible and capable of putting the needs of others above their own wishes.

They also generally need to be intelligent and organized enough to properly handle the paperwork and asset management required during trust administration. Their health and age are important considerations. Trustors want to choose people who are likely to remain healthy for decades.

Choosing someone who lives nearby can also be important, as a significant distance could impair a trustee’s ability to consistently manage trust resources. This is especially true in scenarios where people use physical assets, such as their houses, to fund a trust. In some cases, naming two or more people to serve as co-trustees.

The process of selecting an appropriate successor trustee is as important as properly structuring and funding a trust. Reviewing prospective candidates carefully can help trustors ensure that they empower the right person to manage their affairs.