Common Successor Trustee Mistakes (and How to Avoid Them)

Common Successor Trustee Mistakes (and How to Avoid Them)

Being a successor trustee is a weighty responsibility. You want to be sure that person you select will do what is best for the trust and ensure a good financial future for your beneficiaries. However, there are some common pitfalls that a successor trustee could fall into. Here are a few ways to provide help that may prevent the most common pitfalls.

• Bookkeeping errors – Is your trustee level-headed but not the best with numbers? An accountant can help ensure that no mistakes are made. Plus, a second set of eyes keeps everyone on the straight and narrow.
• Crossing the line – A successor trustee can fall into think that he or she plays a larger role in how the assets are preserved than you intended. Leaving precise instructions will help your trustee to remember what his or her proper function is.
• Envy – Your trustee sees what you are leaving to your beneficiaries and is the one doing all the work. In order to avoid feelings of envy or jealousy from clouding the trustee’s judgment, it is a good idea to provide adequate compensation.

It is also important to be objective when selecting your successor trustee. The best way to avoid problems is to select the best person for the job rather than allowing sentiment to get in the way.

California Estate Planning Experts

For more assistance with trusts, contact the estate planning attorneys at Petrov Law Firm by calling 619-344-0360. We are happy to help California residents plan for the future with confidence.