How to Keep Your Successor Trustee from Making All the Common Mistakes

How to Keep Your Successor Trustee from Making All the Common Mistakes

Establishing a trust is a great way to eliminate all of the problems that come along with probate. Your family won’t have to worry about the court fees or deal with an executor. This can prevent long delays in receiving the inheritance. However, it is still important to choose the right successor trustee in order to ensure that your estate is in good hands until it gets to your beneficiaries. Here are a few ways to keep your successor trustee from making the most common mistakes.

1. Hire an Accountant – Unless your trustee is particularly good with numbers and understands accounting, this is the best way to ensure that there are no errors in the record keeping. Plus, having two people to check each other’s numbers keeps everyone honest.
2. Outline Instructions Clearly – Sometimes a trustee can get confused about the role that he or she plays. To eliminate confusion, make sure your estate planning documents outline how you want your trustee to act, including how the assets are preserved until they reach your beneficiaries.
3. Provide Adequate Compensation – Your trustee knows how much has been set aside for your beneficiaries. The trustee is doing all of the work. So while you may leave a relatively small percent of your estate to compensate the trustee, it should be enough to ensure he or she doesn’t feel cheated or isn’t moved to maneuver for a little additional compensation from your family.
4. Be Objective – Sentimentality cannot guide your choice of a successor trustee. It has to be the person who is best suited for the job. Otherwise, problems are likely to come about.

Assistance in Developing a Trust and Other Estate Planning in California

The estate planning attorneys at Petrov Law Firm are experienced in helping California residents to plan properly for the future. To learn more, contact us today at 619-344-0360.