• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Wilcox Attorneys, PA

Wilcox Attorneys, PA an Arkansas Estate Planning & Trust Information Center

Northwest Arkansas Estate Planning Attorneys (479) 443-0062

Client Vault
  • Home
  • Our Firm
    • Our Firm
    • About the American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Speaker Connection
  • services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • Secure Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Webinars
  • Practice Areas
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • Legacy Wealth Planning
      • Medicaid Planning
      • Pet Planning
      • Probate
      • Trust Administration & Probate
    • Newsletters
    • Pre Consultation Form
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog

Why the Trustee You Appoint Could Make or Break Your Trust

March 21, 2017 by Deb Sexton Leave a Comment

This is an article from the Law Offices of Kobrick & Moccia (https://www.kobricklaw.com/) in Garden City, New York, that we thought others might find helpful.

Like many people, you may have decided to include a trust in your comprehensive estate plan. Though every trust agreement is as unique as the “Trustor,” (person who created the trust) all trusts do have several components in common. One of those is the need to appoint a Trustee. Unfortunately, we frequently spend very little time, if any, contemplating the best person for the job of Trustee. To ensure that you are not one of those people, it helps to understand why the Trustee you appoint could make or break your trust.

All trust agreements require the same basic elements for creation:

  • Trustor — the person who creates the trust agreement
  • Beneficiary – the person, or entity, who will benefit from the trust
  • Terms – create guidelines for how the trust will be administered and the assets disbursed to the beneficiaries of the trust.
  • Funding — assets sufficient to fund the trust
  • Trustee – to administer the trust terms and manage trust property

People often make the mistake of appointing a spouse, sibling, or friend to the position of Trustee without giving the subject much thought. It is only later that the error in appointing the wrong person for the job becomes apparent.

A Trustee is charged with managing trust assets until they are distributed to the beneficiaries of the trust. Often, this includes investing trust assets. The law says that a Trustee is in a fiduciary role, meaning that the Trustee must use the utmost caution and care with trust assets and must not take risks when investing those assets. Though the law tries to prevent a Trustee from making risky or unwise investment choices, the law cannot ensure that a Trustee invests trust assets in a manner consistent with the wishes of the Maker. For that, you must depend on your choice of Trustee.

Along with investing and protecting trust assets, a Trustee must also be able to follow the trust terms with regard to distribution of trust assets. Sometimes those terms include a significant amount of discretion on the part of the Trustee.

Finally, a Trustee must have at least a basic understanding of the state and federal laws that apply to trusts and to trust administration, including the tax preparation requirements for a trust. Your spouse/sibling/friend may have the best of intentions; however, that does not make him/her the best person for the job.

If you have additional questions or concerns about who to appoint at the Trustee of your trust, contact the experienced New York estate planning attorneys at The Law Offices of Kobrick & Moccia. by calling 800-295-1917 to schedule your appointment.

  • Author
  • Recent Posts
Deb Sexton
Latest posts by Deb Sexton (see all)
  • Estate Planning is Essential Whether You Are Married or Not - April 25, 2018
  • Income Tax Basis in Estate Planning – Part 2 - April 23, 2018
  • The Downsizing Generation: How to Handle a Surplus of Stuff When a Loved One Ages - April 18, 2018

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Wilcox Attorneys, PA

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Subscribe to Our Blog

Subscribe to our blog for all the latest estate planning news and updates!

Office Address

Fayetteville
2766 Millennium Drive
Fayetteville, AR 72703
Phone: (479) 443-0062

Office Address

Prairie Grove
1100 Division Street, Suite 4
Prairie Grove, AR 72753
Phone: (479) 846-6026

( By Appointment Only )

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM

Map

map for office
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

footer-logo

© 2023 American Academy of Estate Planning Attorneys, Inc.