Planning for your family’s future is about more than just saving money. It’s about ensuring your loved ones are cared for, even when you’re no longer here. A key part of any estate plan is choosing a trustee, the person who manages your trust and makes sure your wishes are followed. A trust is like a set of instructions for how your money or property should be used, such as supporting your kids or a favorite cause. The trustee’s job is to follow those instructions carefully. Choosing the right trustee is crucial. Pick wisely, and your plan runs smoothly; choose poorly, and you risk confusion or family disagreements.
At JGR Financial Solutions, we work with your trusted attorney to help families navigate these important decisions with clarity. In this article, we’ll explain what a trustee does, how they differ from other roles like an executor or power of attorney agent, and five key things to consider when choosing a trustee. We’ll keep it simple, so you can feel confident about your estate plan.
What is a Trustee, and How Is It Different From Other Roles?
- Trustee vs. Executor(trix): An executor (or executrix, if female) is the person named in your Last Will and Testament to handle your estate after you pass away. They pay your debts, file final taxes, and distribute your assets according to your will. Their role is usually short-term, ending once the estate is settled. A trustee manages a trust, which can last for years or even decades, following the specific rules you set.
- Trustee vs. Power of Attorney Agent: A power of attorney (POA) agent is someone you authorize to make decisions for you while you’re alive, such as managing your finances or health care if you’re unable to do so. Their role ends when you pass away. A trustee’s role typically begins after your death (or sometimes during your lifetime for certain trusts) and focuses on managing the trust’s assets for your beneficiaries.
Five Things to Consider When Choosing a Trustee
- Are They Trustworthy?
Honesty is the most important quality in a trustee. You need someone who will act in the best interests of your beneficiaries—the people or causes you’re leaving money to. A trustworthy trustee follows your instructions exactly, whether it’s funding your grandkids’ college or supporting a charity. Ask yourself: Can you count on them to put your wishes first, no matter what? - Do They Understand Money and Legal Matters?
Managing a trust involves handling investments, taxes, or legal paperwork. Your trustee should have some knowledge of these areas or be willing to work with professionals, like accountants or attorneys, to get it right. Without these skills, they might make mistakes that could cost your family money. Think about whether your trustee has the ability to manage these tasks effectively. - Will They Be Available for the Long Term?
Trusts can last for years, sometimes even generations. Your trustee needs to be available and capable for the long haul. Consider their age, health, or life circumstances. Will they have the time and energy to manage the trust 10 or 20 years from now? Make sure your choice can commit to the role for as long as it’s needed. - Do They Share Your Values?
Your trust reflects what matters most to you—maybe it’s supporting your kids, helping a charity, or keeping a family business running. Your trustee should understand and respect those priorities. For example, if you want your trust to pay for your children’s education, choose someone who values education and will make choices that support your goal. - Can They Handle Tough Situations?
Families don’t always agree, especially when money is involved. A trustee might need to make difficult decisions, like when to give out money or how to settle disagreements between beneficiaries. Choose someone who can stay calm and fair, even in challenging situations, to keep your plan on track.
Questions to Ask Before Choosing a Trustee
To help you pick the right trustee, ask yourself these questions:
- Do they have experience managing money or trusts, or can they work with professionals to do so?
- Can they stay fair if there’s a family disagreement?
- Do they understand what matters most to you, like supporting your kids or a favorite cause?
- Are they available to manage the trust for as long as it’s needed?
These questions can guide your decision, but estate planning can be complex. That’s why we recommend working with an attorney who specializes in trusts and estates. They can help you evaluate your options and choose a trustee who fits your unique needs.
