In the estate planning process, you may need to name a trustee to manage your estate. The trustee is the person who takes charge of your assets when you die. Often, people will choose a family member or a friend about being his or her trustee. Sometimes, this can be a great choice. Forbes explains that there are positives and negatives to who you choose to be your trustee, however.
The positives of choosing a family member or a friend is that that person will be the most familiar with you. When it comes to understanding the dynamics between you and your family, you can rest easy knowing that he or she can handle being the trustee and honoring your wishes. As a bonus, friends or family are less likely to charge a fee for being the trustee.
Some still choose professional trustees, however. When it comes to your trustee, professional trustees have more experience and expertise in trust administration. Some also worry about arguments breaking out between family members after a person passes away. Will your family fight over who you choose as the trustee? If you choose someone who is not a friend or family member then you will probably have less resentment between family members.
When it comes to choosing a trustee, you want someone who is trustworthy and someone who is financially responsible. Do not choose someone who makes poor decisions with money. Likewise, he or she needs to have basic knowledge about investments and asset management. The trustee should also be someone who is not prone to family drama.