As you plan your online living trust, one of the most vital elements is deciding who will serve as a trustee if something happens to you. Successor trustees are responsible for not only carrying out your wishes but also administering your assets and even making important decisions for you.
While many people name a single successor trustee, having multiple co-trustees can bring real benefits to everyone. However, it can also bring new pitfalls. How can you choose between a single trustee and multiple trustees? Here are a few pros and cons to consider.
The Pros of Multiple Trustees
A single trustee is generally a simpler process, as you only must prepare and rely on one person. However, multiple trustees ensure that your trust is in good hands no matter what happens to one trustee. Their death, illness, distance, or skillset won't prevent your wishes from being carried out.
In addition, some people choose multiple trustees when one person doesn't have the time or expertise to handle all aspects of your trust. For example, if your trust includes rental units, you can name a trustee to handle the administration of the trust and another one solely to manage the rental properties. Neither person must take up all the work nor be an expert in all matters.
The Cons of Multiple Trustees
When there is more than one person involved in trust management, they must all be able to cooperate and quickly come to agreements. Finding multiple people who can do this well without your presence may be challenging. Some trust planners solve this issue either by separating responsibilities or by naming three trustees instead of two (thereby having a built-in tie-breaker).
If your trust is set up to pay the expenses and/or fees of the trustee, the additional managers will cost more money — potentially reducing the value of your estate. And more people will spend their time and energy administrating your affairs.
Where to Learn More
There is no one right or wrong answer to the number of trustees you should name. While one trustee may simplify matters for a smaller estate, one with complex elements or that needs a lot of administration could benefit from multiple people.
The best place to begin is to meet with a quality online living trust service in your state. They will help you assess your trust's needs, your budget, and your pool of potential trustees to decide the best route. Call or visit today to get started.
Share22 July 2021
I still remember the day that my wife and I bought our first home. We were excited about filling the place with new furniture and looking for great area rugs. Unfortunately, before we knew it, we found ourselves deeply in debt. It was difficult to dig our way out, but over the course of the next several years, we were able to make things right. I want to teach other people how to manage finances so that they can avoid the turmoil that we went through. Financial planning might seem impossible, but with a little practice, I know it can become second-nature.