For many people, a thorough estate plan includes several trusts. Trusts use various benefits such as flexibility, control and both tax and probate avoidance in many cases. Although there are a variety of trusts that you can pick from when you choose to develop a trust, all trusts need the exact same standard aspects to begin– a recipient, a trustee and funds.
When deciding who to appoint as trustee, you may think about selecting co-trustees, but is this really a sensible idea? Although just you can make that decision, there are some things you might want to consider prior to making the decision.
Estate planning rules generally permit you to call anyone you want as trustee and do not limit you to naming simply one trustee. For this factor, individuals typically think about calling more than one trustee. If, for example, you have more than one child you might be concerned that calling one child as trustee will produce a family rift. While calling two children may avoid this, it can cause dispute within the trust itself. When there are two trustees that can not agree with each other, crucial choices might end up in a deadlock. If you feel that it is very important to include more than one trustee in your trust, think about naming three rather of two so that choices can be made by a majority vote. Or designate a trust advisor, someone who is independent and can be called upon to break a tie vote and carry out numerous other functions where independence is preferred. This is also described as an unique trustee.
Of course, another alternative is merely to select one neutral trustee rather of including family members. This might be an attorney or a professional trustee. By selecting a neutral trustee, not just do you avoid creating conflict within the family, but you have someone who is not emotionally interested in the result of trust choices managing those choices. This avoids both dispute within the family and a dispute of interest with any choices made concerning the trust itself. Make sure to talk to your estate planning attorney before you decide regarding who to designate as the trustee, or co-trustees, of your trust.