One of the biggest issues in creating an irrevocable trust is that there is no way it can be amended once your property has been transferred. For this reason, it is vital that you choose the correct person to serve as trustee. This should not only be someone who you can rely on to administer the property and assets to your beneficiaries, but also someone who will not redirect, spend, or otherwise appropriate the items in trust for his or her own benefit.
How to Choose The Trustee of Your Irrevocable Trust in Florida
The person you choose as trustee must be:
ResponsibleIt is a trustee’s duty to act in the best interests of the trust’s beneficiaries (rather than his own) at all times. This standard of care is called a fiduciary duty, and trustees may be subject to legal action if they are found acting in ways not appropriate to the trust.
Financially adeptMany trusts ensure that funds are help until a certain period of time (such as a number of years or until a child’s 18th birthday) until they may be distributed. Your trust agreement should outline whether or not the funds in trust may be invested, and if so, how the trustee may invest them. Your trustee will need to have a firm grasp on financial concepts, such as distribution of income on assets placed in trust, in order to serve your beneficiaries well.
DiligentWhile spouses, children, friends, or family members may serve as trustees, they must understand that administering to the trust will be a significant time investments. They must also be prepare to deal with unforeseen circumstances, such as how to distribute property if a beneficiary is no longer alive or cannot be found.
Since there are many burdens involved in acting as trustee, you may wish to consider having an independent party act as your fiduciary trust manager. At Walt Shurden Elder Law, we can act as your trustee or co-trustee to endure your family is protected, as well as advice you on which assets to place in trust and which relatives may be included as beneficiaries. Call our office in Clearwater, FL today at 877-241-1230 to get started, or email us to have our staff contact you.