(612) 206-3701 info@lucerelegal.com

Why you might want a professional Trustee

Lucere Legal helps people work with a professional trustee
Categories: Trusts

When you create your Trust, you could choose anyone to be your trustee. It could be a relative or it could be a trusted friend. However, administering a trust can be a lot of work and time, and there are very specific rules that must be followed. The trustee has to deal with legal and tax matters, manage assets, handle disbursements, and maintain good records. Sometimes it seems like a good idea to have someone you know to be the trustee, but it may be more responsibility than they want to bear when it comes down to it. It may be a burden for them.

A good alternative is a professional trustee – either an attorney experienced with trust administration or a corporate trustee (a trust department in a bank, or a trust company). While these services do cost money, it might be a better alternative in the long run. Here’s why:

Trusts are complex legal documents and the trustee needs to act in accordance with both the provisions set out in that documents and the laws that govern fiduciary duties. Professional trustees understand the language in the documents, knows what it means, and knows what the laws are in regards to a trustee’s duties. By choosing a professional trustee, you know that your trust will be administered effectively, efficiently, and within the bounds of the law.

Trusts can have nuanced tax implications that can be very impactful, and it is important that decisions regarding the trust be made with those implications in mind. Having a professional trustee means that they have the technical expertise to make the right decisions, or know to consult with someone else who does.

Friends and family members may or may not administer your trust in an unbiased way, especially when relationships are intertwined, emotions flare, and personal agendas can be forwarded. A professional trustee is above the fray and able to make objective, rational decisions based on the instructions given in the trust, and not based on family politics.

A professional trustee has his or her professional license on the line and is under greater scrutiny than a friend or family member, so there is less likelihood that they will handle the trust improperly.

When it is all said and done, you are creating a trust so that your wishes are carried out. The best way to ensure that happens just as you intend may be to have a professional trustee. Although well-meaning family and friends may be willing to serve as your trustee, it may better for everyone if they didn’t.

We can help you make the important decisions about who should be your trustee, as well as other aspects of your trust planning. Call us at (612) 206-3701 or fill out our contact form today to make an estate planning consultation.

Contact us to see how we can help you with Trusts

You may also like . . .

Looking to Avoid Probate? Make Sure That You Fund Your Trust

You wouldn’t let your children get on their bicycles with only half a helmet; their protection is your number one goal. Yet many people make the mistake of leaving significant portions of their inheritable assets unshielded by the the trust they create. Even...

Are You Ready for Joan Rivers’ $150 Million Secret?

The unexpected death of Joan Rivers on September 4, 2014 was a shock to us all. Legendary comedienne, she spent her long life bringing laughter to millions of Americans with frequently irreverent roasting of her fellow celebrities (actress Elizabeth Taylor, in...

The plain-English guide for Minnesota small business owners

When it comes to business, ignorance isn't bliss; ignorance is risk.

There's a handful of legal topics that business owners should be familiar with, at least on a rudimentary level, to reduce the risk of having something horrible come out of left field.

This book is a legal guide to help you put the most common business legal issues on your radar, with enough information for you to be on the alert for when you may need to get some professional advice.

The intention in arming you with this information is so that you can proceed in business confidently and with fewer legal quagmires.

Do you have a cabin?

The first generation that buys a cabin enjoys it to the fullest and it’s a magical place where happy memories are made and families go for some much needed respite. Unfortunately, without thoughtful planning, the chances of the cabin staying a place of happiness and tranquility into successive generations is very, very slim.

If you haven’t done the planning in advance and made it legally binding, the family members (and their ex-spouses and new spouses) will have to work every detail out for themselves. If they can’t, what is likely to happen is a lawsuit called an action for partition that forces everyone to sell their interest. This lawsuit is expensive, and the costs of litigation will come out of the proceeds of the sale of the cabin, so to add insult to injury to those who wanted to keep the cabin but couldn’t afford to buy the others out, they are footing part of the legal bills in the lawsuit against them. Ouch!

It’s no wonder that family members stop speaking for years after the cabin conflict is “resolved.” You can’t make family relationships perfect, but you can take away much of the fuel for the family conflict fire. That’s what cabin planning does, and it has the nice side effect of giving you peace of mind now.

That’s why Kimberly wrote The Minnesota Cabin Planning Guide and Workbook, and you can get a free electronic copy of her book on our cabin planning website, or you can find it in many county libraries in Minnesota, or you can get it on amazon.com.

Make An Appointment>

Join Our Mailing List

Subscribe to our newsletter list to get information and resources helpful to running your business and planning and managing your personal financial affairs delivered right to your inbox.

We don’t spam and won’t share your information with anyone, at anytime, ever.

Check out our podcast

The Small Business Buzz Podcast