THE CHOICE OF TRUSTEE IS CRITICAL
TO THE SUCCESS OF YOUR ESTATE PLAN

In estate planning one of the most important decisions a client makes is who should act as trustee to manage the estate for the beneficiaries. 

As with any other personnel decision, the tests are: “Can the person do the job?” and “Will the person do the job?”.  The duties of a trustee fall into two broad categories: the ability to handle the trust assets and the ability to distribute the assets in an appropriate way for the beneficiaries.

Handling the trust assets includes collecting assets, paying bills, investing assets, balancing income and principal growth, record keeping and accounting, preparing income tax returns, and giving notices and reports to current and future beneficiaries.

Exercising discretion in the use of the money means the trustee must carry out the plan of the trust in the way the trust settlor intended, balancing the interests of the current and future beneficiaries.

The trustee may be a family member, a friend, a trusted advisor or a trust company.  Some clients do have individuals available who have the skill to be a trustee, or the skill to find appropriate advice.  Occasionally a trustee is dishonest.  However, more often when we see problems with a trust it is because the trustee does not have the time, or take the time, to do the job.

A trust company may charge a fee for acting, but the independence, experience, financial resources and expertise may be worth the cost.  If you are concerned about a trust company being impersonal, name that family member or friend as co-trustee.

If you would like more information, contact:  Christopher Anderson (816.472.3117), John Dooling (314.259.4743), Jonathan Igoe (314.342.8019) or one of the other attorneys in the Tax, Employee Benefits and Trusts and Estates Practice Group.

Please feel free to pass this on to any colleague or client who may be interested in this information.