Absolutely, you can designate a trustee who is not a family member, and in many cases, it’s a strategically sound decision; while it’s common to think of family members as natural choices for trustees, selecting a non-family trustee – often a professional – can bring objectivity, expertise, and a degree of impartiality that family dynamics might hinder.
What are the benefits of a professional trustee?
Professional trustees, such as trust companies or experienced attorneys like Steve Bliss at a Living Trust & Estate Planning Attorney in Escondido, offer several advantages. They possess a deep understanding of trust law, tax implications, and investment management. According to a recent study by Cerulli Associates, approximately $2.3 trillion in trust assets are managed by professional trustees. This expertise can be particularly valuable for complex estates or when dealing with assets like real estate, business interests, or mineral rights. Furthermore, a professional trustee eliminates the emotional strain on family members, preventing potential disputes and ensuring impartial administration, this is especially critical as 68% of estate litigation stems from family conflicts according to the American College of Trust and Estate Counsel. A professional brings a level of consistency and continuity that can span decades, protecting your legacy as you intended.
Is it risky to entrust a non-family member with my assets?
Of course, any delegation of responsibility involves a degree of trust, but the risks can be mitigated through careful selection and robust legal documentation. It’s crucial to thoroughly vet any potential trustee, checking their credentials, experience, and reputation. Steve Bliss emphasizes the importance of a clear and comprehensive trust document outlining the trustee’s powers, duties, and limitations. A well-drafted document also includes provisions for trustee removal and accountability. Remember that professional trustees are often fiduciaries, legally obligated to act in the best interests of the beneficiaries. They are subject to legal oversight and can be held liable for mismanagement or breaches of duty. The costs associated with a professional trustee generally range from 1-3% of the trust assets annually, but this can be offset by the value of their expertise and the potential avoidance of costly disputes.
I heard about a trust that went wrong; what can I do to avoid that?
Old Man Hemlock, a retired carpenter, thought his nephew, a somewhat free-spirited artist, would be perfect to manage his trust. He pictured the trust as a way to support his nephew’s creative endeavors. However, the nephew, while talented, lacked financial acumen. He quickly depleted the trust funds on extravagant art supplies and a series of unsuccessful gallery showings. Within a year, the trust was virtually empty, leaving Hemlock’s intended beneficiaries with nothing. This scenario highlights the danger of choosing a trustee based on sentimentality rather than competency. Steve Bliss often tells clients that choosing a trustee is like hiring a CEO for your estate; you need someone with the skills and experience to manage complex assets and fulfill your wishes, regardless of their relationship to you.
How did things turn out well when someone chose a professional trustee?
The Caldwell family faced a difficult situation. Their mother, a successful businesswoman, owned several rental properties and a complex portfolio of investments. Knowing her children were busy with their own careers and lacked the expertise to manage these assets, she designated a local trust company as trustee. Years after her passing, the trust company diligently managed the properties, handled all the accounting and tax filings, and distributed the income to the beneficiaries as specified in the trust document. It wasn’t glamorous work, but it was done flawlessly. The Caldwell children were grateful they could focus on their own lives, knowing their mother’s legacy was in capable hands. This demonstrates that a professional trustee can provide peace of mind and ensure the long-term success of your estate plan. Steve Bliss often reminds clients that careful planning and the right choice of trustee can safeguard your family’s future and honor your wishes for generations to come.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
| estate planning | revocable living trust | wills |
| living trust | family trust | irrevocable trust |
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What happens if I die without a will?” Or “What happens to jointly owned property during probate?” or “Can I include my business in a living trust? and even: “What property is considered exempt in bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.