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The Keys to the Castle and the Control of the Trust in Virginia

Trust but verifyOne of the many important decisions to make when constructing an estate plan is determining who will serve in the role of trustee. Because a trustee will have control over assets, typically for many years, choosing the wrong trustee can thwart a client's best laid plans.

You can build the greatest and strongest castle in all the land. However, if you leave it to a guard who forgets to lock the gate, then those strong walls won’t do you much good. Trusts work pretty much the same way. Even the most carefully crafted trust is hobbled, counterproductive or even broken by leaving the wrong trustee in charge. How do you make sure you leave the trust in the right hands?

Picking a trustee can be a very difficult task. It is not the same as crafting words to paper – ink is cheap in a certain sense – because picking a trustee means picking the right person. You have to read people well and know the right people (or financial institutions) to pick. Financial Planning recently offered a few principals well worth mulling over if you’re in the process of creating a trust in an article titled “Selecting a Trustee? 3 Factors to Consider.

Factors one and two are useful: “think twice before naming children” and “consider using a professional.”

There are definite trade-offs to read into this because a family member turned trustee is certainly wedded to the project and the well-being of the family. On the other hand, a professional is detached. Of course, a professional is detached for good reason. Depending upon the complexity of the assets in a trust, correctly managing them can require a special skillset. Finally, and regardless who you put in charge, remember that the trust itself can always be built to include a power to remove a trustee. Depending upon whom you choose and who your beneficiaries are, this may be more and more important to strengthen, either to protect the trustee or to ensure that the trustee can be kicked out.

Finding a trustee is always a bit of a balancing act, but it is a necessary one. The purpose of the trust itself is to ensure there is a legal device carrying out your wishes, to hold your assets and protect your beneficiaries as you would do so yourself. So when you build the castle, with whom will you leave the keys?

You can learn more about this topic as well as other strategies on our website under the tab entitled: estate planning in Virginia. Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning.

Reference: Financial Planning (May 29, 2014) “Selecting a Trustee? 3 Factors to Consider

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Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.