When you are planning your estate, the first thing you need to establish is who to appoint as your estate trustee. An estate trustee will be responsible for administering your estate and ensuring that the wishes left in your will are executed properly. You can choose one-person, multiple people, or even a trust company as your trustee. Choosing one person places the responsibility on that single individual to make all the decisions; choosing multiple people makes things a little more complex.
Choosing a Trustee
Choosing a reliable, responsible, and trustworthy person as your trustee is essential to having a smooth execution of your estate. Most people will choose their spouse, an adult child, a relative, or a friend. But there are times when a person will choose to appoint two or more trustees, whether it be to protect people from feeling left out or wanting to split the amount of work. Whether you are looking to appoint one person or multiple people, you should speak to them before appointing them to ensure they are willing and able to accept the responsibility.
Things to Keep in Mind When Appointing Multiple Trustees
There are many things to consider if you are planning on appointing multiple trustees, such as:
- How will the tasks be delegated between the trustees?
- How will decisions be made between the trustees?
- Can trustees act independently?
- Is approval from all trustees needed?
- Is there veto power?
- How well will my trustees get along?
- How will conflict between trustees be resolved?
Advantages of Multiple Trustees
There are some advantages when it comes to selecting multiple trustees, such as:
- Multiple trustees may add a safeguard against protentional abuse of authority
- Sharing the responsibilities of the estate between multiple trustees may offer a more efficient administration
- Beneficiaries may be more responsive and respectful of the actions and decisions made by a unified group of trustees as opposed to one person
Disadvantages of Multiple Trustees
There are some disadvantages when it comes to selecting multiple trustees, such as:
- Disagreement between multiple trustees may lead to conflicts
- Delays can result if all trustees are required to be present and act together
- Banks, individuals, and businesses may be reluctant to accept the directions of fewer than all trustees, even if there is documentation stating a single trustee can act independently
Connect With Suzanne Desrosiers Professional Corporation
If you are looking for guidance or have any questions about estate planning and the selection of your estate trustee, please feel free to reach out to Suzanne Desrosiers Professional Corporation by calling us at (705) 268-6492 or emailing us at info@sdlawtimmins.com and we would be more than happy to help!