When it comes to estate planning, you have many options. For some people, trusts are the best path forward and safeguard the efficient division of assets among loved ones. When setting up a trust, you have many factors to take into consideration, but it is important to be especially careful when you appoint a trustee. Review your individual circumstances and identify the most suitable candidate.
Trustees must use skill and caution when administering trusts, and they have a number of obligations, such as distributing assets among beneficiaries appropriately and handling tax matters.
The breach of fiduciary duties
According to the Florida Senate, when a trustee fails to abide by their fiduciary duties, they could face a number of consequences. For example, they could have to restore property or pay money and the court could deny the trustee compensation.
In some instances, the court removes a trustee and appoints a special fiduciary to take over the trust. It is important to discuss these obligations with the person you appoint to oversee your trust in order to avoid future challenges.
Finding a suitable trustee
When trying to find the most suitable trustee, you should take many factors into consideration. Reflect on their ability to manage your trust correctly and devote enough time to legal matters. Whether you name a family member, friend or another party as the trustee, this decision will affect your loved ones.
Sometimes, trustees have a number of questions and concerns, and you should carefully review these issues with them. By taking a methodical approach to all facets of the estate planning process, you can help ensure the smooth distribution of your assets.