Laypeople often think about estate planning as something that is resolved after you execute certain documents. While it is true that you must state your final wishes in writing, you should also consider the estate administration process that will unfold after you are gone.
In the trust declaration, you name a successor trustee to administer the vehicle when the time comes, and your heirs would be the beneficiaries. It is possible to use someone that you know personally to act as the trustee, but it is not a ceremonial role that you bestow upon someone as an honor.
The trustee has a fiduciary duty to the grantor and the beneficiaries. This means that the administrator must always act in the best interests of the parties that are involved.
There are very specific rules that must be followed to administer the trust in accordance with legal standards, and this is one thing to take into consideration. You should also be concerned about the longevity of the trustee and potential real or perceived conflicts of interest.
Depending on the nature of the assets, the trustee may be called upon to handle investments, and this is another level of responsibility that requires considerable expertise. The administrator that you choose must also have the time and the willingness to undertake all of these tasks.
In a real sense, finding the ideal trustee among your immediate contacts is kind of like the search for the mythical unicorn. That’s the bad news, but the good news is that you are making a connection with a professional fiduciary that you can rely on for top-notch trust administration services right now.
AD&R can assume this role after you pass away if you want to be certain that your living trust is administered in accordance with professional standards. This is a major area of specialization for our firm, and we should point out the fact that we can act as the trustee for more complex types of trusts.
The Special Needs Trust is an example of a complex trust. This would be an irrevocable trust, and the beneficiary would not be allowed to touch the principal at all. However, the trustee that you name in the declaration would be empowered to use assets in the trust to make the beneficiary more comfortable in many different ways. As you may imagine, the rules and regulations are complex, so the trustee must understand them thoroughly to preserve benefit eligibility.
You definitely do not want to take any chances when the stakes are this high, and very few people that are not professionals have any knowledge about the way that a special needs trust should be administered. This is where we can enter the picture to provide fiduciary services.
Our doors are open if you would like to consult with our professional fiduciary. You can send us a message to request an appointment, and we can be reached by phone at 775-823-9455.