There are several qualifications you should consider when selecting your trustee. Among the more important are the following:
- Administrative skill and knowledge: A trustee has to perform a multitude of tasks, including safeguarding of assets, collection, reinvestment and distribution of income, document interpretation, bill paying and any number of other duties.
- Investment expertise: A trustee must develop an investment program that meets the requirements of all the trust beneficiaries. In today’s changing and volatile investment arena, investment expertise is one of the most critical chores of a trustee.
- Tax and accounting capabilities: A trustee must keep detailed, accurate records and be able to submit timely reports to the trust beneficiaries, the probate court and the IRS. The trustee must also assist in making decisions that will have the most beneficial tax consequences to the trust and all parties involved.
- People skills: A trustee must be able to develop an honest relationship with both the creator of the trust and the trust beneficiaries to serve as a trustworthy financial adviser. Communication among all parties ensures the stated trust purpose and needs of the beneficiaries are met appropriately.
- Integrity: The single-most important qualification for any trustee is to abide by its fiduciary duty and to live up to standards higher than those that prevail in everyday business. A trustee must be loyal and treat each and every trust beneficiary fairly and impartially.
Selecting The Right Trustee by Susan Willett | WilmingtonBiz Insights