Planning for the future is a vital part of ensuring your loved ones are cared for and your wishes are honoured. When creating a will that includes trusts, one of the most crucial decisions you will face is selecting the right trustees. These individuals will hold significant responsibility in managing the trust’s assets and acting in the best interests of the beneficiaries. At Blackstone Solicitors, we understand the importance of getting this decision right. Here are six essential tips to guide you in choosing the right trustees for your trusts in wills.
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For a free initial discussion on how we can help you deal with the legal implications of creating a Trust, get in touch with us today. We are also experienced in dealing with all aspects of Wills and Probate and we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
- Understand the Role of a Trustee
Before selecting your trustees, it’s crucial to understand what the role entails. A trustee is responsible for managing the assets placed in the trust according to your wishes as outlined in the trust deed. This includes:
- Making decisions about how to invest and distribute the trust’s assets.
- Ensuring the beneficiaries receive their entitlements at the appropriate time.
- Keeping accurate records and preparing accounts for the trust.
- Acting impartially and in the best interests of all beneficiaries.
Trustees are also legally obligated to act with honesty, diligence, and prudence. Understanding the demands of the role will help you select individuals who are capable of meeting these expectations.
- Choose Trustees You Trust
As the name suggests, trustees should be individuals you trust implicitly. They will be responsible for safeguarding the assets within the trust and ensuring your wishes are carried out. Trustworthiness is a fundamental quality, as trustees may need to make critical decisions about investments and distributions without immediate oversight.
Consider individuals who have demonstrated reliability, integrity, and good judgement in their personal or professional lives. This might include close family members, friends, or trusted professionals.
- Consider Their Skills and Experience
Managing a trust can be complex, especially if the assets are substantial or involve investments, businesses, or properties. When choosing trustees, think about their skills and experience:
- Financial acumen: Trustees often make decisions about investments and need a solid understanding of financial matters.
- Legal knowledge: While not essential, a basic understanding of legal responsibilities can be helpful.
- Organisation: Trustees must maintain detailed records and ensure compliance with legal and tax obligations.
If you feel none of your potential trustees possess these skills, you might consider appointing a professional trustee, such as a solicitor or a trust corporation, who can bring expertise to the role.
- Ensure Impartiality
Impartiality is critical when it comes to managing a trust, particularly if there are multiple beneficiaries with competing interests. For example, if your trust benefits both your children and grandchildren, the trustee must balance their decisions to ensure fairness across generations.
While family members can make excellent trustees, it’s worth considering whether their relationships with the beneficiaries could create conflicts of interest. In some cases, appointing an independent trustee or professional can help ensure impartiality and avoid potential disputes.
- Assess Their Availability and Willingness
Being a trustee can be a time-consuming responsibility. Your chosen trustees should have the availability to dedicate time to the role and the willingness to take on the responsibility. It’s important to have an open and honest conversation with potential trustees to ensure they understand what the role involves and are prepared to commit to it.
Factors to consider include:
- Geographical location: Trustees may need to manage properties, attend meetings, or liaise with professionals, so their proximity to the trust’s assets and beneficiaries can be important.
- Personal circumstances: Trustees with demanding careers or young families may struggle to devote the necessary time.
- Health and age: Consider the long-term nature of the trust and whether your trustee’s circumstances might change over time.
- Appoint Multiple Trustees and Consider a Professional
While you can appoint a single trustee, it is often advisable to have at least two trustees to provide checks and balances. This can help ensure decisions are made collaboratively and reduce the risk of mismanagement.
However, having too many trustees can create inefficiencies, so it’s generally best to limit the number to two or three. If you decide to appoint family members or friends, consider complementing them with a professional trustee. Professional trustees, such as solicitors or trust companies, bring expertise and impartiality to the role and can help navigate complex financial or legal matters.
Having a mix of personal and professional trustees can be an effective way to balance familiarity with the family’s needs and the technical expertise required to manage the trust effectively.
Additional Considerations
Clarity in Your Will
When drafting your will, ensure that the roles and responsibilities of your trustees are clearly outlined. Ambiguity can lead to disputes or mismanagement. Working with experienced solicitors, such as our team at Blackstone Solicitors, can help ensure your instructions are precise and legally sound.
Successor Trustees
It’s wise to consider what will happen if a trustee can no longer act due to ill health, death, or other reasons. Appointing successor trustees in your will can help ensure continuity in the trust’s management.
Remuneration for Professional Trustees
If you choose to appoint a professional trustee, remember that they will charge fees for their services. While this is an additional cost, it can be worthwhile for the expertise and impartiality they bring to the role. Ensure you understand the fee structure before appointing a professional trustee.
Review Your Trustees Regularly
Life circumstances change, and the individuals you initially appoint as trustees may no longer be the best choice in the future. Regularly reviewing your will and the suitability of your trustees can help ensure the trust is managed effectively over time.
Conclusion
Choosing the right trustees for your trusts in wills is a decision that requires careful consideration. The individuals you appoint will play a pivotal role in safeguarding your assets and ensuring your wishes are honoured. By understanding the responsibilities of trustees, prioritising trust and impartiality, and considering professional support, you can make informed choices that provide peace of mind for you and your loved ones.
How we can help
We have a proven track-record of helping clients create Trusts. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Wills and Probate Solicitors
It is important for you to be well informed about the issues and possible implications of creating a Trust. However, expert legal support is crucial in terms of ensuring your wishes are met as you would want them to be.
To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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