People who want to protect their resources, structure their legacies and minimize probate issues might create revocable living trusts. The person funding a trust, known as the trustor or grantor, often acts as the initial trustee. They manage resources and make trust distributions until they die or lose their capacity due to medical challenges. At that point, a successor trustee takes over their role administering the trust.
For those concerned about their financial stability later in life for the preservation of their legacy after they die, the selection of the right successor trustee can have a profound impact.
Who can manage trust resources?
Grantors establishing trusts need to consider the relationship they have with potential successor trustee candidates. A person’s financial responsibility, honesty and organizational skills are all important considerations.
Age and health are also factors that may influence the best person to name as successor trustee. Grantors generally want to choose candidates who are young enough to assume trust administration responsibility years later when the grantor declines due to advanced age or dies.
They likely also want to ensure that they select someone who has the time and ability to manage trust resources and the emotional tenacity to handle any conflicts that might arise during trust administration. The willingness of people to service trustee is also a factor that can influence the best option.
The selection of the right successor trustee can help grantors feel more confident about preserving their legacy and ensuring the proper management of their trust. Reviewing a list of candidates, and also the assets that may fund the trust, with a skilled legal team can help people as they establish trusts.
