Who should I pick as successor trustee?
For a revocable living trust, you are most likely going to be the initial trustee. You will need toselect a successor (backup) trustee to act when you no longer can. To select the right person for the job, first consider whether the trustee should be an individual, a professional trustee, or afinancial institution. If choosing an individual, pick someone you know who is diligent, detail-oriented, and whom you trust to carry out your clear instructions. If you choose a professional trustee or financial institution, notify them to ensure that they are willing and able to serve in that capacity and determine whether they have a minimum trust value that you must meet to engage them for this purpose.
What does a successor trustee do?
The role of trustee is an important one: this will be the person responsible for managing, investing, and distributing trust property according to the terms of the trust agreement. At the grantor’sdeath, the trustee will also be in charge of creating an inventory of the trust’s accounts and property, paying final expenses, and filing the necessary tax returns. A successor trustee(either an individual or institution) serves as a backup, or replacement, to the original trustee when that original trustee passes away or is incapable or unwilling to serve in the role.
Should I pick a corporate trustee?
Although it may seem simple to choose a friend or family member you believe can handle the responsibility of acting as your trustee, selecting a corporate trustee is the best choice for some individuals and family situations. Professional trustees, banks, and trust companies that focus on trusteeship provide expert trust management services. You can also rely on them to be impartial because they are not related to you or any of your beneficiaries, so there is no emotional connection to the tasks related to the management of your trust. However, corporate trustees do charge for their services (generally more than friends and family who serve as trustees) and usually require that the trust has a minimum value of assets under their management.
What do guardians and guardian do?
Guardians and guardian are court-appointed individuals who make decisions on a person’s behalf if the person is unable to manage their own affairs (in other words, the person is incapacitated). The decisions delegated to this individual can range from determining where the incapacitated person will live to ensuring that their bills are paid. Typically, guardian refers to the person in charge of managing decisions related to the ward (the person who is no longer able to manage their affairs), while conservator refers to the person in charge of managing the ward’s finances. You can avoid relying on individuals appointed by the court to step in for you when you are incapacitated by adding proper powers of attorney, along with explicit directions for them, to your estate plan. You can also minimize the need for a guardianship if all of your accounts and property have been funded into a revocable living trust. Once funded into the trust, the successor trustee can manage those items without court involvement.
What is the difference between my healthcare agent and my financial agent?
Healthcare and financial agents are two distinct roles in an estate plan. Your healthcare agent, also referred to as a healthcare proxy or healthcare surrogate, is responsible for making or communicating medical decisions on your behalf and may also implement your prearranged medical instructions if you are unable to do so. A financial agent manages your money—for example, paying bills, filing taxes, purchasing insurance, and adjusting investments—if you can no longer do so yourself. You may choose to appoint the same person or different people for these roles. It is up to you to decide who is best suited for each role.
What does personal representative mean—is that term different than executor?
A personal representative is the same as anexecutor;the terms can be used interchangeably, as different states use different terminology for the same role. This is the individual or institution whom you appoint within your last will and testament to be responsible for winding down your affairs following your death if a probate administration is needed. They are also in charge of additional administrative tasks such as preparing an inventory of all of the accounts and property that make up your probate estate, paying outstanding debts and expenses, and filing the appropriate tax returns.
What is a trust protector, and do I need one?
A trust protector refers to an individual nominated in your trust to ensure that your estate planning goals and overall intentions are carried out if the law or other circumstances change. In some situations, a trust protector can be empowered to update or fix issues with your trust without court involvement. They can also step in if your trustee is not fulfilling their duties. They will only act if something needs to be done, and you can limit their authority and the circumstances under which they can act as much as you want, with some state-specific limitations. Having a trust protector is extremely helpful once you have passed away and cannot make the changes yourself. Although you are not legally required to appoint one, a trustprotector is often an excellent addition to an estate plan.
Who should be the trust protector?
You can appoint an individual or professional you trust to step in as a trust protector if the need arises. Because this is not a role with ongoing responsibilities, it does not require the same time commitment as that of a successor trustee. Alternatively, rather than naming the trust protector yourself, you can designate a person or group of people to appoint a trust protector in the future if one is needed. With this option, your loved ones can wait until the need arises to have a trust protector appointed instead of you having to appoint someone today, along with a list of backups, just in case. Lastly, you can require that a court appoint a trust protector when one is needed. Although one of the benefits of a trust is that management of trust assets can occur without court involvement, having the court appoint a trust protector ensures third-party oversight over a very important role and is a very brief court process limited in scope.
