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When to Consider a Professional Trustee

Posted on in Estate Planning

Fort Lauderdale trusts attorneyIn our last blog, we discussed a few tips on choosing the right trustee. Administering a trust is a big responsibility that not everyone is prepared for. While many people choose a trusted family friend or even a business partner to manage their trusts, professional trustees are always an option. There are a few distinct advantages to hiring a professional trustee, but also a few drawbacks. Choosing a trustee can be a very personal decision. You will need to consider a number of factors including your family dynamics, the size of your trust, how you want trust principal to be managed, and the financial skills of everyone involved. An attorney may be able to help talk you through the decision-making process so that you can be even more confident in your ultimate choice. 

Who Might Benefit From a Professional Trustee?

One of the major advantages of using a professional trustee is that you are guaranteed skilled financial management. This may be a good option if you do not have anyone in your life who you consider both trustworthy and excellent with money. If your trust is sizeable and you would like its principal to be invested in the hopes of growing the trust, then a professional trustee might be the way to go. While no one can guarantee that any investment will succeed, a professional certainly has better odds of profiting through investment. 

Another thing to consider is your family dynamics. If everyone in your close family loves each other and gets along beautifully, you may be less afraid to let a relative manage the trust for your beneficiaries. However, if there is a rift in the family and some of your family members are estranged from others, or if there is frequent conflict, it may take an outside professional to ensure that distributions are made fairly and without bias. 

Disadvantages of Professional Trust Management

There are a few disadvantages of relying on a professional trustee who does not know your beneficiaries. While your sister might inherently know that your son cannot be trusted with $40,000 to open a restaurant, an outside, professional trustee may not. However, a professional trustee is likely to make inquiries and investigate the strength of his business plan before making any distributions. 

Aside from that, your professional trustee will not know you very well. They will rely only on the instructions you give them to make an educated guess about what you would probably do were you still here to manage your own trust. 

It is important to weigh both the advantages and drawbacks of using a professional trustee before making a commitment. 

Speak With a Broward County Trusts Attorney

Navigating trust administration and planning may be tough, but Law Office of Miller & Miller, P.A. is ready for any estate planning challenge that comes our way. Our skilled Wilton Manors trust lawyers can help you make the right decisions to make the most of your trust. Call 954-981-9301 for a free consultation. 

 

Source:

https://www.forbes.com/sites/christinefletcher/2019/05/31/how-to-choose-a-trustee/

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