Long Island Elder Law & Estate Planning

Long Island trust attorneys

Although a Last Will and Testament remains the most common estate planning tool, trusts have steadily increased in popularity over the last several decades to the point where it is now very common to find one in the average estate plan. There are numerous different types of trusts that help achieve a wide variety of estate planning goals. One thing that all trusts have in common, however, is the need to appoint a Trustee to administer the trust. To help ensure that you make the best choice, the Long Island trust attorneys at Eghrari Wealth Training Firm offer some help choosing the right Trustee for your trust.

What Is the Job of a Trustee?

The two primary functions of a Trustee are to manage/invest trust assets and to administer the trust using the trust terms created by the Settlor. Examples of specific duties and responsibilities a Trustee may be responsible for include:

  • Managing and protecting trust assets
  • Abiding by the trust terms unless they are impossible, illegal, or unconscionable
  • Investing trust funds using the “Prudent Investor Standard”
  • Monitoring trust investments
  • Communicating with trust beneficiaries
  • Resolving conflicts among beneficiaries
  • Making discretionary decisions
  • Distributing trust funds to beneficiaries
  • Approving or denying distributions if given discretionary authority
  • Keeping detailed trust records
  • Preparing and paying trust taxes

Questions to Ask When Picking a Trustee

Before making the common mistake of blindly appointing a close friend or family member as your Trustee, ask yourself some questions to decide if that person is really the right person for the job, such as:

  • Does he/she have any experience in the legal field?  Many of the tasks of a Trustee involve understanding complex state and federal laws that apply to trusts. Ideally, your Trustee should have prior experience in the legal field and/or a working knowledge of the laws involved.
  • Does he/she have experience in the financial field? As the Trustee, he/she will be responsible for investing and growing the trust assets. Make sure a candidate has the experience and/or education to be able to take on this responsibility successfully.
  • Is he/she likely to be available to serve as your Trustee?  Never assume that someone will be available to serve as your Trustee. When it comes time to administer the trust, the individual does not have the time, has moved away, or has personal/medical issues that prevent him/her from fulfilling the duties of a Trustee.
  • Is he/she willing to serve as your Trustee? By the same token, don’t assume that someone is willing to take on the job of Trustee just because they are a family member or close friend. It is a big job and may be too much for some people. Always sit down and discuss the position with a prospective Trustee before appointing someone as your Trustee.
  • Does he/she have any potential conflicts with trust beneficiaries? Appointing a family member can create conflicts if the beneficiaries of the trust are also family members, particularly if the Trustee has discretionary powers under the terms of the trust.
  • Does he/she live close to major assets?  If you include real property among the trust assets, it is best to appoint a Trustee who lives close enough to keep an eye on the property instead of relying on someone else to do so.
  • Is he/she good at conflict resolution? Conflict among the beneficiaries of a trust is common. Appointing a Trustee who is skilled at conflict resolution will often result in avoiding costly litigation which can drain the trust of assets.

Contact Long Island Trust Attorneys

For more information, please join us for an upcoming FREE seminar. If you have additional questions or concerns regarding who to appoint as the Trustee of your trust, contact the Long Island trust attorneys at Eghrari Wealth Training Firm by calling us at 631-265-0599 to schedule your appointment.

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About Eghrari Wealth Training Law Firm

Mark S. Eghrari is an attorney in private practice in Smithtown, New York. He has been in practice since 1988. Mark S. Eghrari provides extensive estate and tax planning services to individuals and businesses. Mr. Eghrari’s primary focus is helping clients avoid probate, minimize or eliminate Federal and State Estate taxes and protect their assets from the high cost of nursing care, if they become ill.