WAEstate

Illinois Estate Planning Attorney

header-logo
Attend a Free Workshop
header-logo
(309) 944-2188 (800) 644-5345
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • Communities We Serve
      • Henry County
        • Cambridge
        • Geneseo
      • Mercer County
      • Rock Island
        • Moline
    • Employment Opportunities
    • News & Events
    • “What’s Happening” Newsletter
  • Services
    • Asset Protection and Business Planning
    • Elder Law and Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Guardianship
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning Services
    • Medicaid Planning
    • Probate and Trust Administration
    • Special Needs Planning
    • Veteran’s Benefits
  • Elder Law
    • Alzheimer’s Information
    • Caregiver Assistance
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
  • Workshop
    • Follow Up Questionnaire
  • Reports
    • Advanced Estate Planning
    • Basic Estate Planning
    • Estate Planning for Niches
    • Trust Administration
  • Resources
    • Articles
      • Business Succession Checklist
      • Estate And Gift Tax Figures
      • Is My Estate Plan Outdated?
      • Top Estate Planning Techniques
    • Definitions
    • Elder Law Resources
      • Elder Law Reports
    • Frequently Asked Questions
      • Estate Planning FAQs
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning FAQs
      • LGBTQ Estate Planning FAQs
      • Nursing Home Planning FAQs
      • Power of Attorney FAQs
      • Trust Administration & Probate FAQs
    • Illinois Medicaid Resources
    • Newsletters
    • Presentations
    • Published Books
  • Review Us
  • Blog
  • Contact Us

When Is a Professional Trustee the Best Choice?

July 30, 2019 by Mary Ann Brown

Moline trust administration lawyersAt some point, you may decide that incorporating a trust into your estate plan is a good idea. If you do, one of the most important decisions you will need to make when creating your trust will entail deciding who to appoint as the Trustee of your trust. The trust administration lawyers at Nash, Nash, Bean & Ford, LLP discuss when a professional Trustee is the best choice for your trust.

What Is a Trust?

A trust is a legal relationship where property is held by one party for the benefit of another party. The person who creates a trust is referred to as the “Settlor”, “Trustor” or “Grantor.” The Settlor transfers property to a Trustee, appointed by the Settlor. The Trustee holds that property for the trust’s beneficiaries, also named by the Settlor. The overall job of a Trustee is to protect and invest trust assets and to administer the trust terms found in the trust agreement. Trusts all fall into one of two categories – testamentary or living trusts. A testamentary trust is activated by a provision in the Settlor’s Will at the time of death whereas a living trust activates once all formalities of creation are in place and the trust is funded. Living trust can be further divided into revocable and irrevocable living trusts.

Benefits of a Professional Trustee

The overall job of a Trustee is to protect and grow the trust assets and administer the trust according to the terms created by the Settlor. A common mistake Settlors make is to appoint a family member, or close friend as the Trustee of their trust without objectively considering whether that person is the right person for the job. Often, the better choice is to appoint a professional Trustee for several reasons, including:

  • Experience – successfully administering a trust requires a certain amount of legal and financial knowledge and experience. The Trustee of a trust should ideally be familiar with all the applicable state and federal laws that govern trust administration. In addition, a Trustee needs to have the financial wherewithal to invest the trust assets in a way that they will grow over the lifetime of the trust. Most of the time a professional Trustee will have more experienced and knowledge about trust administration than a spouse/family member/friend has.
  • Objectivity – a Trustee may have the authority to make discretionary disbursements if certain conditions are met. A professional Trustee is typically more likely to be objective when deciding if a request for a disbursement should be granted because the Trustee does not know the beneficiary on a personal level.
  • Liability — the Trustee of a trust can, under certain circumstances, be held liable for the loss of assets or other negative outcomes during the administration of the trust. Not only would you not want someone close to you to be in such a position, but a professional Trustee is less likely to be in that position because he/she has the experience and the knowledge to avoid those circumstances.
  • Conflicts – the Trustee of a trust is often called upon to resolve conflicts among beneficiaries and is always required to try to prevent them from occurring in the first place. When the Trustee knows the beneficiaries on a personal level it can be must more difficult to avoid, or help resolve, conflicts. Worst still, the Trustee can easily run into a conflict of interest that could threaten the success of the trust.
  • Desire – Settlors often make the mistake of assuming that the person they appoint as Trustee is willing and able to serve. Unfortunately, that is not always the case, particularly if the trust is a testamentary trust because it means that the Settlor recently died. A spouse, family member, or friend may not want to act as your Trustee while grieving your recent death. With a professional Trustee these issues are not a concern.

Contact  Trust Administration Lawyers

For additional information, please download our FREE estate planning worksheet. If you have additional questions or concerns related to appointing a professional Trustee to administer your trust, contact the experienced trust administration lawyers at Nash, Nash, Bean & Ford, LLP by calling 309-944-2188 to schedule your appointment today.

  • Author
  • Recent Posts

Mary Ann Brown

Latest posts by Mary Ann Brown (see all)

  • What Is Required of a Trustee? - November 19, 2019
  • Can Life Insurance Be Paid to a Trust? - August 27, 2019
  • When Is a Professional Trustee the Best Choice? - July 30, 2019

Filed Under: Trust

Other Articles You May Find Useful

Geneseo trust administration attorney
Do I Need a Lawyer to Help Me Administer a Trust?
Geneseo trust attorneys
Can Life Insurance Be Paid to a Trust?
Moline trust administration attorneys
Top 5 Questions to Ask When Choosing a Trustee
living trust benefits
Living Trust Benefits
creating a trust
Steps Involved in Creating a Trust
Nash Nash Bean & Ford, LLP
Can a Beneficiary Do Anything If the Trustee Isn’t Following the Trust Terms?

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Client Testimonials

“Jim was my attorney when I needed representation on my father's health care. We received immediate results and I was very pleased.”
claire–
“When someone is in need for an elder law attorney, I always recommend Mary Ann Brown.”
gale–

Blog Subscribers

  • This field is for validation purposes and should be left unchanged.

Geneseo

445 US Highway 6 East
Geneseo, IL 61254
United States (US)
Phone: (309) 944-2188
Fax: (309) 944-3960

Geneseo Map/Location

nashbean_sidbr_map

Moline

5030 38th Avenue, Suite 2
Moline, IL 61265
United States (US)
Phone: (309) 762-9368
Fax: (309) 944-3960

Moline Map/Location

nashbean_sidbr1_map

Business Hours

Monday9:00 AM - 4:30 PM
Tuesday9:00 AM - 4:30 PM
Wednesday9:00 AM - 4:30 PM
Thursday9:00 AM - 4:30 PM
Friday9:00 AM - 4:00 PM
  • About The Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube
footer-logo

Nash Nash Bean & Ford, LLP
All Rights Reserved.

© 2019 American Academy of Estate Planning Attorneys, Inc.