When creating an estate plan, you will encounter several terms and jargon. This can make the process seem overwhelming and confusing.
One term to learn is “trustee.” Knowing the role of a trustee is something you should understand. Understanding the role of a trustee is essential to ensure you choose the right person for this.
Responsibilities of a trustee
If you create a trust, which is an option for your estate plan, you must assign a trustee. This should be someone you trust to take legal ownership and responsibility for the assets put in the trust. When you pass away, the trustee will also administer the assets based on your directions.
Selecting the right person is crucial
When you name a trustee, you believe they will act in your best interest and ensure your instructions for the assets put in your trust are done. Because this is such a big job, you must choose your trustee carefully.
Talk to the person you want to name as a trustee
Before you name someone as your trustee, you should ask them how they feel about it. The role takes time and takes a lot of responsibility. Because this is the case, you need to make sure the person you name to it is willing and able to handle the job. When you discuss your decision ahead of time, you can feel confident in the person you appoint as your trustee.
Naming your trustee
Creating an estate plan is the best way to feel confident that your assets will be distributed based on your wishes after you pass away. However, there is a lot that goes into this process. An important part is naming the trustee if you create a trust (which is not required). Be sure to understand the right way to do this to avoid issues down the road.