Why an Attorney May Make a Good Trustee
An attorney may make a good choice to be a trustee because he or she generally has a strong understanding of the law. This means that there is less of a chance that decisions will be made based on anything other than a factual understanding of what a trust says. While you may want to choose an adult child or friend to be a trustee, that person may make decisions based on emotion as opposed to acting as a fiduciary.
Does Your Child or Friend Have Experience Managing Money?
If your oldest son or closest friend has little experience managing money, there could be problems in administering a trust in the future. For instance, your friend from school may not understand how to calculate return on investment or understand what a step-up basis is. Whomever you choose to oversee the trust may also have a hard time saying no to a beneficiary who wants money to buy a new car or take a trip overseas.
Other Family Members Could Feel Unappreciated
When you choose a family member to act as a trustee, others could feel left out or as if they weren’t considered trustworthy by a parent or grandparent. This could lead to family infighting that may result in time and money spent in court. The money spent on legal fees and court costs will generally come from the trust itself, which may erode its total value.
You Can Always Name Multiple Trustees
It is possible to name more than one trustee, and they can work together to ensure that the trust is executed as the grantor intended. Consulting with a trust administration lawyer in Las Vegas could help you decide how to structure the document as well as who should be named to oversee it.