The creation of a thorough estate plan requires numerous decisions to be made. Of course, decisions regarding the distribution of assets upon your death will need to be made; however, some of the most important decisions that must be made are those that involve the appointment of positions within your estate plan. If you have a living trust in your estate plan, for example, you must appoint a trustee for the trust.
In the Quad Cities, Illinois, trusts have become one of the most popular additions to any estate plan due in large part to their versatility. Trusts fall into one of two category types – testamentary and living. A testamentary trust is one that activates when you die whereas a living trust becomes active as soon as all of the formalities needed to create the trust have occurred and sufficient assets have been transferred in to fund the trust.
Living Trust in the Quad Cities Illinois
Regardless of which specific type of living trust you create you will need to appoint a trustee. Some types of living trusts allow you to appoint yourself as the trustee. This tactic is often used when incapacity planning is the main function of the trust. This works by creating revocable living trust and the transferring in important assets such as your home, financial accounts, and bank accounts. Along with naming yourself as the trustee you then name a spouse or other loved one as the successor trustee. Upon your incapacity, the successor trustee takes over automatically, allowing a transfer of control over important property without the need to go through the court system.
For other trusts it is extremely important that you take the time to consider what the duties and responsibilities of the trustee will be and then appoint the right person for the job. Even the relatively simple trust without extensive assets will require management. The larger and more complex the trust, the more difficult the job of trustee will be as a general rule. Your trustee has a fiduciary duty to the trust, meaning that the trustee must use the utmost care when investing, managing, and distributing trust assets. Because the position of trustee requires financial acumen and the ability to understand the legalities of trust administration, many people choose to appoint a professional trustee.
If you are unsure who to appoint as the trustee of your living trust in the Quad Cities Illinois, talk to your estate planning attorney for advice.
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