By Marguerite C. Lorenz, EA, CTFA, CLPF
February 2010

Who would you select (or have selected) to serve you if you resigned as trustee of your trust, become incapacitated (temporarily or permanently), or died? Have you heard any sad stories about what’s happened to people who either didn’t have an estate plan in place or had one, but an inexperienced or conflicted person got the job? Before you finalize your documents, here are some questions to consider: 

• Does my successor trustee have experience and expertise in handling finances? Good accounting and bookkeeping skills? Trust and estate tax experience?
• Will my successor trustee remain objective, responsive and compatible with all beneficiaries of the trust and other family members? 
• Will my successor trustee be able to devote sufficient time to the management of the trust, unburdened by other obligations such as a job or family for three years or more?
• Is my successor trustee also a beneficiary, causing a “natural conflict of interest”?
• If you’ve selected someone you haven’t informed about the job, will he or she know what to do if that proverbial bus hit you tomorrow?
• If your parents are considering naming you or a sibling to be the one who makes financial decisions after they’re gone, how would you feel if it was you? How about if your parents, instead, selected a professional to handle everything?

If you select a professional as your successor, give yourself an opportunity to get to know the person. Is he or she licensed? Find out which organizations they belong to (like the Professional Fiduciary Association of California) and what training they’ve received (designations such as Certified Trust and Financial Advisor from the Institute of Certified Bankers or Certificate in Professional Fiduciary Management for Trustees, Cal State Fullerton). If you select a bank or trust company, meet the Trust Officer you’ll be working with and ask enough questions to feel comfortable with the expense, expertise, and style of your selection.  We encourage you to keep learning about the estate planning process. 

Marguerite C. Lorenz is a California-licensed Professional Fiduciary who works with clients to keep their estate plans up-to-date and put them into action. To learn more, visit www.MyTrustee.net.