There are numerous benefits that people can derive when they establish revocable living trusts. One of the perks, when compared with an irrevocable trust, is the ability to act as the initial trustee. The person funding the trust can manage trust resources until they die or become incapacitated.
At that point, the successor trustee they selected assumes responsibility over ongoing trust administration. Choosing an appropriate candidate to serve as successor trustee can be a challenge, especially for those concerned about family conflict after their passing.
How do trustors choose the right person to serve as their successor trustee?
Availability and capability are key
Selecting a successor trustee requires a careful assessment of an individual’s capabilities. A trustee must be organized and able to follow complex instructions. They may need to manage and distribute a variety of valuable assets.
They may need to manage conflict well, as family members and other interested parties may question their management or the instructions for trust administration. Selecting someone who is reliable and ethical is of the utmost importance.
An individual’s availability to manage trust administration is also a key consideration. The most capable individuals in a person’s inner circle might have demanding careers or family responsibilities that diminish their ability to manage the trust. They may live far enough away to make hands-on management of resources impractical.
Individuals establishing revocable living trusts may want to create a list of candidates and review their options with the attorney assisting them with the creation of the trust. Choosing an appropriate successor trustee helps protect an individual when they are vulnerable and ensures that their trust has a positive impact on their legacy.