How Do I Choose a Trustee?

How Do I Choose a Trustee?

By Phil Rarick, Miami Trust Attorney, and Jasmine Benitez, Legal Assistant

Choosing a trustee is one of the most important decisions you will make when creating a trust.   A trust is simply legally binding instructions, and you must be confident that your trustee will follow these instructions exactly and consistently with your intent.  The trustee will be responsible for managing and distributing your investments and properties in a smart and prudent way that benefits you during your lifetime and after the death of your beneficiaries.

As a Miami Trust attorney with over 30 years of experience – and father of 3 adult children – here are four key factors I have learned over the years to consider when choosing a trustee:

1. The Trustee Does Not Need to Be a Financial Expert

Many people mistakenly believe that a trustee must have a background in finance or law. While having a financial or legal background can certainly be helpful, it’s not a requirement for most trusts.

You do not need a Warren Buffett type to act as a Trustee – the most important quality is a person who is reliable and trustworthy – the Trustee can always hire an experienced Certified Financial Planner to manage investments.

2. Someone You Trust (Close Family or Friend)

Choosing a trustee who is someone you trust implicitly is critical. This individual will be responsible for managing your assets in a way that honors your intentions, whether that’s providing for loved ones, making charitable donations, or following other instructions you’ve set.

Note:   The first and primary purpose of having a trust is to make sure that your lifestyle is protected in the manner that you are accustomed to living. If every dime is needed during your life, then it is the Trustee’s responsibility to make sure that your needs always come first.

Many people choose a close family member or friend to serve as trustee because they know your values and priorities.  For example, a child, sibling, or trusted friend may have a good understanding of your desires when it comes to distributing assets or taking care of specific instructions, such as funding education or healthcare for your children.

3. Always Consider a Successor Trustee

It is always important to have a successor trustee who can step in if the first Trustee is unable to serve.   It is good to have a short batting order of successor Trustees: a first, second, and third trustee, if possible.

In some cases, people choose a successor trustee from a different generation or a trusted professional, such as a licensed trust attorney or trust company, to ensure the trust is managed seamlessly.

Note: A Trust never fails for lack of a Trustee. But every good Trust should identify who would have the authority to name a successor Trustee if the original Trustees are unable to serve.

4. Discuss Your Choices with an Estate Planning Attorney Experienced in Trust Administration

Some estate planning attorneys are not experienced in the field of Trust Administration.

This is where the rubber meets the road: where your trust instructions are implemented and hopefully in a cost-effective manner. Some estate planning attorneys avoid this type of work because it can be challenging if the attorney does not have experienced paralegals to manage much of the work.

Conclusion:    As Miami Trust attorneys, Rarick & Bowden Gold has over 50 years of collective experience in drafting trusts and trust administration.  We can help you establish a trust that can be efficiently administered according to your instructions. 

Notice: This article is intended for informational purposes only. It is important you consult with an experienced Miami Trust attorney. For more information, contact Attorney Phil Rarick at (305) 556-5209 or by email at prarick@raricklaw.com.