Although establishing a trust is often associated with powerful or wealthy individuals, in reality many people can benefit from this useful estate planning instrument. Reasons for establishing a trust include the desire to:
• Have specific, personal wishes implemented, especially those regarding distribution to heirs; and
• Avoid the costly, public, and often prolonged process of probate.
One of the most significant decisions to make concerning the management of a trust is the choice of a knowledgeable and dependable trustee. Though it may be tempting to assign this job to a close family member, there are several questions to be considered before taking this step, including:
• Does this person want the responsibility?
• Does he or she have the necessary time available to manage your trust?
• Is this person skilled and experienced in financial matters?
• Will she or he be able to remain unbiased when carrying out your wishes?
• Will making this person your trustee result in conflict within the family?
• Are there other family members prepared to step in if the appointed trustee cannot complete the necessary tasks?
It is important to remember that it is possible to name a reliable financial institution as a trustee instead of an individual. One of the advantages of choosing a financial institution as trustee is the impartial expertise that the institution possesses. Often, the decision to turn over management of one's trust to a skilled and neutral third party is tremendously reassuring, minimizing both financial and emotional concerns.
The skilled Arkansas estate planning attorneys at Hyden, Miron & Foster, PLLC, can assist you with all of your trust-related needs. Contact us for a consultation by calling (501) 482-1787.