Whom should you choose as a trustee?

Author

Edward Jones - Chad Choate, AAMS

For more information about the author, click to view their website: Edward Jones

Posted on

Jun 14, 2024

Book/Edition

Florida - Sarasota, Bradenton & Charlotte Counties

Share This

When drawing up your estate plans, you might find it useful to create a revocable or irrevocable trust, either of which can help your estate avoid probate court and give you significant control over how and when your assets are distributed. But who should oversee your trust.

As the person who established the trust — known as the “grantor” or “settlor” — you can also name yourself as trustee. However, this may not be the best move, particularly if the trust is irrevocable. An irrevocable trust protects the assets in the trust from creditors and civil judgments, but if you serve as trustee, this protection will disappear. It might be more advantageous for you to be the trustee of a revocable (living) trust, which can be modified without much trouble and allows you to move assets in and out of the trust and to change trust beneficiaries. You should work with a qualified estate-planning attorney to determine which type of trust, if any, is appropriate for your situation, and to get some guidance on the wisdom of serving as your own trustee.

          

If you decide to choose someone else as trustee, you’ll want to consider the following factors:

            Trust – In thinking about whom you might want to serve as your trustee, the most important attribute is trust. Do you trust that this individual will always act in your best interest? If so, then they may be a good trustee candidate, but you’ll also need to look at other considerations.

            Financial management skills – The person you choose to be your trustee doesn’t have to be an accountant or a financial professional but they should be skilled at managing their own finances. And they should be well-organized and good with details.

            Mental and physical fitness – Your trustee could serve in that position for many years, so you’ll want to name someone who is in good physical and mental health. Of course, things can change over time, so if you observe that your chosen trustee has begun to suffer physical or mental decline, you may need to name a successor trustee in your trust document.

            Conflict of interest – You want your trustee to carry out your wishes in a fair manner so, you should pick someone who doesn’t have a conflict of interest with any of the beneficiaries you’ve named in your trust. Of course, this can be tricky if you want to name a family member as trustee. So, if you do, you’ll need to spell out your wishes clearly to the trustee and to other family members.

           

Here’s something else to think about: Instead of choosing an individual, you could name a corporate trustee. By doing so, you can receive some key benefits, such as objectivity and potentially avoiding some of the family-related disputes that can arise when an estate is settled. Also, corporate trustees have the expertise and resources to navigate the various tax and inheritance laws affecting living trusts.

   

         Whether it’s a trusted individual or a corporate entity, the right trustee can make a big difference in the effectiveness of your living trust and, by extension, the outcome of your comprehensive estate plans. So, start your search, get the help you need and take the steps necessary to arrive at a choice for trustee that’s right for you and your family.

 

Chad Choate III, AAMS
828 3rd Avenue West
Bradenton, FL 34205
941-462-2445
chad.chaote@edwardjones.com

 

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC

Other Articles You May Like

The Financial Benefits of In-Home Care vs. Assisted Living

Families that are looking to ensure the best care for their loved ones in their later years are torn between in-home care and assisted living facilities. While both options have merits, understanding the financial implications can help you make informed decisions.Read on to explore the financial benefits of in-home care when compared to assisted living.Flexibility in Services and CostsIn-home care offers great flexibility, allowing families to customize care plans according to their needs and budgets. Whether your loved one requires full-time care or just a few hours of assistance daily, you can tailor the services to match their requirements. This flexibility helps manage costs effectively, as you only pay for the services you need, avoiding the all-inclusive fees typically associated with assisted living facilities.Staying in a Familiar EnvironmentOne of the most significant advantages of in-home care is that it allows seniors to remain in their own homes. This provides emotional comfort and eliminates the substantial costs of relocating to an assisted living facility. Homeownership often means that many seniors have already paid their mortgages, making home care a financially attractive option. This also avoids the often-overlooked expenses of selling a home, moving costs, and adjusting to a new living environment.Avoiding Additional FeesAssisted living facilities often charge additional fees beyond the base rate, including charges for medication management, personal care, and even higher levels of assistance. In-home care, however, allows for a more transparent and straightforward fee structure. By discussing needs upfront with a home care provider, families can better anticipate costs and avoid unexpected expenses.Personalization of CareIn-home care offers a one-on-one care dynamic that is hard to match in assisted living facilities. This personalized attention ensures that seniors receive consistent and tailored care, which can lead to better health outcomes and potentially lower healthcare costs over time. Personalized care can help prevent hospital readmissions and manage chronic conditions more effectively, saving money on medical expenses.Leveraging Family and Community SupportFriends, family members, and local community resources can supplement professional care, reducing costs. This collaborative approach helps financially and fosters a stronger sense of community and support for the senior.Home EquityIn-home care allows families to utilize home equity through various financial instruments such as reverse mortgages. This can provide a steady income stream to pay for in-home care services without selling the family home. This financial strategy can be particularly advantageous, offering a way to fund care while preserving the familys most valuable asset.Government and Insurance SupportMedicaid, Medicare, and various long-term care insurance plans often provide benefits that can offset the costs of in-home care services. Understanding and using these benefits can significantly reduce out-of-pocket expenses, making in-home care a more affordable option. Choosing between in-home care and assisted living involves carefully considering many factors, with financial implications being a major aspect. HomeWell Care Services can help you explore care options for your loved ones. Contact us at our Sarasota location by clicking here or our Bradenton location by clicking here or by phoning us at 941-303-5642.

How HomeWell Care Services Celebrates Pride

June is here and that means its almost time to celebrate Pride Month! This colorful month helps show support for members of the LGBTQIA+ community by acknowledging their history, cultures, and society. But how does HomeWell Care Services celebrate pride, and what can you expect from their services?Why Is Pride Month Celebrated in June?Some of you might be wondering why Pride Month is celebrated in June of all months. This is because what was considered the first pride parade was thrown on the one-year anniversary of the Stonewall Riots in New York City, with the parade happening on June 28th, 1970.Over the years, other pride events spread, often celebrated in June. In June 1999, the American president at the time, Bill Clinton, declared June Gay and Lesbian Pride Month, which has been shortened to simply Pride Month over the years. In that way, the history of Pride Month has been rooted in the communitys history from the very beginning. The entire month becomes a celebration of the LGBTQIA+ community, but more importantly, about love, connection, and being true to oneself.HomeWell Care Services and PrideLove and connection are something the staff at HomeWell Care Services takes pride in, as they allow their clients to be true to themselves as they provide them with the highest quality care possible. Their caregivers are culturally competent, allowing them to provide their services along with great human connection and respect.  Along with other support services, HomeWell Care Services offers the following:      Personal Care: As we age, things that we do every day, such as getting dressed in the morning or preparing meals, can become more difficult. Personal care plans from HomeWell Care Services let aging seniors or those suffering from medical conditions or other injuries manage their independence that much easier.      Concierge Care: Are you looking to have an outing, but require someone to go with you so that you can truly enjoy yourself? This service offers that in spades. With experienced caregivers ready to go, outings will be designed so that you can have a blast and have great conversations with your caregiver as you do!      Life Enrichment Activities Program (LEAP): Social isolation is a big worry for those who are older and still live at home. HomeWell Care Services therefore offers LEAP as a way to break up the loneliness of the day. A caregiver will come over to enjoy an activity with you, be it something like enjoying a craft or even an afternoon in the garden. Is Homewell a Good Fit for Me?Choosing the right care service is a deeply personal decision, and HomeWell Care Services understands this. They strive to create a customized care experience that respects your unique needs and preferences.Whether you require assistance with daily activities, want to enjoy a day out, or seek companionship to alleviate loneliness, HomeWell Care Services offers a comprehensive range of services to enhance your quality of life. Their compassionate and culturally competent caregivers are dedicated to providing not only exceptional care but also meaningful human connections. With HomeWell Care Services, you can trust that you or your loved one will receive respectful, personalized, and enriching care thats specifically tailored to promote independence and well-being. At HomeWell Care Services, we believe that every client should have pride in themselves, especially during Pride Month! Contact us at our Sarasota location by clicking here or our Bradenton location by clicking here or by phoning us at 941-303-5642.

Signs Your Loved One May Need In-Home Care

As our loved ones age, their needs change. You may start to wonder if they can still manage safely and comfortably at home on their own. In-home care can be a fantastic solution, providing assistance and companionship while allowing seniors to remain independent in a familiar environment. But how do you know when is the right time for in-home care? Here are some signs to look out for.Changes in Activities of Daily Living (ADLs)Activities of Daily Living (ADLs) are the fundamental tasks we must perform to care for ourselves, like bathing, dressing, eating, and using the toilet. If your loved one struggles with these tasks, it could be a sign that they require assistance. This struggle might include difficulty getting in and out of the shower, needing help with buttons or zippers, or forgetting to eat meals.Physical LimitationsPhysical limitations can also necessitate in-home care. Observe if your loved one has become unsteady on their feet, has difficulty using stairs, or experiences frequent fatigue. These limitations can increase the risk of falls and injuries.Altered Memory or Cognitive FunctionMemory lapses, confusion, and disorientation can be signs of cognitive decline. Pay attention to forgetfulness about medications, appointments, or familiar routines. If your loved one struggles to follow conversations or make sound decisions, it might be time to consider in-home care that can provide support and supervision.Home Safety ConcernsLook for potential hazards in your loved one's home environment. Are there loose rugs or uneven flooring that could cause falls? Is the bathroom slippery or lacking grab bars? A cluttered home can also pose safety risks. In-home care providers can help ensure a safe living space if these concerns exist.Reduced Personal HygieneA decline in personal hygiene can indicate that the person struggles to care for themselves. This might include infrequent bathing, unkempt hair or clothing, or a noticeable lack of cleanliness in the home.Social Isolation and DepressionThese are common issues among seniors, especially those living alone. If your loved one has withdrawn from social activities, seems withdrawn or downcast, or loses interest in hobbies they used to enjoy, in-home care can provide companionship and social interaction.Changes in Eating HabitsPay attention to their eating habits. Are they neglecting to go grocery shopping or cook meals?  Do they seem to be losing weight unintentionally? These changes could indicate nutritional deficiencies or difficulty in preparing meals. In-home care can help with meal planning, grocery shopping, and meal preparation.Family Caregiver StrainIf you are the primary caregiver for your loved one, it's important to acknowledge your limitations. Are you feeling overwhelmed or exhausted? Is caring for them impacting your own health or well-being? In-home care can provide much-needed respite and support for family caregivers.Making the DecisionIf you recognize several of these signs in your loved one, it's time to discuss in-home care. This can feel sensitive, but approaching it with love and concern can help ease the transition. There are many reputable in-home care agencies available to provide the level of support your loved one needs, allowing them to maintain their independence and age comfortably at home. Don't let your loved ones age in isolation or struggle with daily tasks. HomeWell Care Services provides compassionate in-home care that promotes safety, dignity, and independence. Contact us at our Sarasota location by clicking here or our Bradenton location by clicking here or by phoning us at 941-303-5642.

Local Services By This Author

Edward Jones - Chad Choate, AAMS

Financial Advisor 828 3rd Ave. W., Bradenton, Florida, 34205

Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.