• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Our Firm
    • About Our Firm
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Communities We Serve
      • Minnesota
        • Bemidji
        • Crookston
        • East Grand Forks
        • Fertile
        • Thief River Falls
      • North Dakota
        • Devils Lake
        • Dickinson
        • Grafton
        • Grand Forks
        • Minot
    • Job Opportunities
    • Speaker Connection
  • Estate Planning
    • Asset Protection
    • Business Planning
    • Elder Law & Medicaid Services
    • Estate And Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Are You A Caregiver
    • Conservatorship
    • Coping with Alzheimer’s
    • Hospice Care
    • Life Care Planning Services
    • Medicaid Benefits
    • Nursing Home Planning
    • Veterans Benefits
  • Seminars/Webinars
  • Resources
    • Client Resources
      • Estate Planning Resources for Farmers
      • Elder Law Resources
        • Bemidji
        • Grand Forks Elder Law
        • Minot Elder Law
        • Thief River Falls Elder Law
      • Estate Planning Checklist
      • Is Your Estate Plan Outdated?
      • Probate Checklist
      • Probate Resources
        • Bemidji Probate
        • Grand Forks Probate
        • Minot Probate
        • Thief River Falls Probate
      • Relocation Toolkit
      • Top 10 Estate Planning Techniques
    • DocuBank
    • Elder Law Reports
    • Free Medicaid/Long-Term Care Calculator
    • Frequently Asked Questions
      • Asset Protection
        • Business Planning
        • Business Succession Planning
      • Elder Law
        • Medicaid Planning
        • Veteran’s Benefits
        • Nursing Home Planning
      • Estate Planning
        • Estate Planning & Divorce
        • Estate Planning for Women
        • Job of an Executor
        • Families Without an Estate Plan
        • Gift, Estate, and Inheritance Taxes
        • Including Philanthropy in Your Estate Plan
        • Including Your Pet in Your Estate Plan
        • LGBTQ Estate Planning
        • Power of Attorney
        • Serving as Executor
      • Financial Planning
      • Incapacity Planning
        • Social Security Benefits
        • Understanding SSI and SSDI
      • Trust Administration & Probate
        • Probate
        • Small Estate Probate
        • Trusts
        • Wills
    • Newsletters
    • Probate & Estate Planning Savings Calculator
    • Professional Resources
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • Reviews
    • Our Reviews
    • Review us
  • Contact Us
  • Blog

GermanLawGroup

Estate Planning & Medicaid Attorneys in Grand Forks , North Dakota

Call us today(800) 774-7576

  • Facebook
  • Twitter
  • Linkdin
  • Instagram
  • Youtube
Attend A Free Seminar
Home » How to Pick Your Trustee

How to Pick Your Trustee

April 2, 2019Trusts

Minot living trustWhile it is true that every estate plan should be uniquely tailored to the needs and goals of the plan’s creator, here are some common estate planning tools and strategies found in the average plan. A trust, for example, is an estate planning tool you will likely find in most plans. If you are considering the addition of a trust to your estate plan, one of the most important steps in creating that trust will be appointing a Trustee. A Minot living trust attorney offers guidance to help you choose the right Trustee for your living 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. 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 trusts can be further divided into revocable and irrevocable living trusts.

What Are the Duties and Responsibilities of a Trustee?

The Settlor (creator) of a trust appoints the Trustee. In overall terms, the Trustee is responsible for managing the trust assets as well as administering the trust using the trust terms created by the Settlor. Among the specific duties and responsibilities of a Trustee are the following:

  • Managing and protecting trust assets
  • Abiding by the trust terms unless they are impossible, illegal, or unconscionable
  • Investing trust funds using the “Prudent Investor Standard”
  • Monitoring trust investments
  • Communicating with trust beneficiaries
  • Resolving conflicts among beneficiaries
  • Making discretionary decisions
  • Distributing trust funds to beneficiaries
  • Approving or denying distributions if given discretionary authority
  • Keeping detailed trust records
  • Preparing and paying trust taxes

Choosing Your Trustee

One of the most common mistakes Settlors make when creating a trust is to use the wrong criteria when appointing someone as the Trustee. For example, people often appoint a spouse based solely on the fact that they believe their spouse will have their best interests in mind or they appoint a family member because they trust them. While those are both desirable characteristics, they are not characteristics that can help someone successfully administer a trust. If you are at the point where you are considering someone for your Trustee, ask yourself the following questions to try and evaluate if that person really has the characteristics that are necessary to successfully administer your trust:

  • Is the individual educated and/or experienced in the finance and/or legal field? Many of the tasks of a Trustee involve understanding complex legal and/or financial concepts so it certainly helps to appoint a Trustee with a legal and/or financial background.
  • Is there a potential for conflicts if this individual is the Trustee? If the individual has a pre-existing relationship with trust beneficiaries, putting him/her in a position of control over assets meant for them could create an uncomfortable situation at best, or a conflict at worst.
  • Will he/she be good at conflict resolution? It is not uncommon for conflicts to occur among the beneficiaries of a trust. A Trustee who is skilled at conflict resolution can go a long way toward avoiding costly litigation.
  • Are you certain the individual will honor your trust purpose? The Trustee is legally bound by the terms of the trust, as you wrote them, unless a term is unconscionable, impossible, or illegal. Sometimes, however, a Trustee is required to use discretion or interpret a term. In that case, the trust purpose should be considered and honored, whether the Trustee agrees with the purpose or not. Make sure a potential Trustee can do that.
  • Have you discussed the position and is he/she willing and able to serve as Trustee? Settlers frequently fail to discuss the appointment with their intended Trustee, instead simply assuming the person is willing to serve as Trustee. When it comes time to administer the trust, the individual does not have the time, has moved away, or has personal/medical issues that prevent the fulfillment of the duties of a Trustee – or simply doesn’t want to serve.

Contact a Minot Living Trust Attorney

Please join us for an upcoming FREE seminar. If you have additional questions or concerns about appointing a Trustee for your living trust, contact a living trust attorney at German Law by calling 701-738-0060 to schedule an appointment.

  • Author
  • Recent Posts
Raymond German, Estate Planning Attorney
Raymond German, Estate Planning Attorney
Attorney at German Law | Wealth
Raymond J. German provides a wide range of estate planning services to his clients, with a primary focus on creating peace of mind providing for the security of their loved ones, reducing taxes and avoiding a probate, all with a well-crafted estate plan. Mr. German defines the mission statement for German Law as “Helping one family at a time pass on values, beliefs and finances, that can be shared for generations to come.”
Raymond German, Estate Planning Attorney
Latest posts by Raymond German, Estate Planning Attorney (see all)
  • Estate Planning Steps for the Beginner - January 26, 2023
  • Common Medicaid Myths Debunked - January 19, 2023
  • Why Single Adults Need an Estate Plan - January 17, 2023

Other Articles You May Find Useful

Terminating an Irrevocable Trust in North Dakota
Terminating an Irrevocable Trust in North Dakota
When Does a Trust Terminate?
When Does a Trust Terminate?
Trust Administration Basics — What Is Self-Dealing?
Trust Administration Basics — What Is Self-Dealing?
Can a Trust Beneficiary Sell His or Her Interest in the Trust?
Can a Trust Beneficiary Sell His or Her Interest in the Trust?
I’m the Trustee! Now What?
I’m the Trustee! Now What?
Are Capital Gains Taxes Due on the Sale or Distribution of Trust Assets?
Are Capital Gains Taxes Due on the Sale or Distribution of Trust Assets?

Primary Sidebar

TESTIMONIALS

Client Review
August 24, 2020
    

Needed to come in to get specific advice for our needs. The attorney spoke to us in terms we could understand, coming to our level and did not make up feel uncomfortable. They were very considerate and caring. We didn’t feel rushed. We felt like they cared and knew what they were doing.

C.P., Minnesota
Client Review
August 24, 2020
    

We were wonderfully satisfied. Wayne did an outstanding job of explaining, diagramming and answering questions and concerns.

JW & CD, North Dakota
Client Review
August 24, 2020
    

They were courteous, efficient, knowledgeable, and trustworthy.

D.T., Minnesota
Client Review
August 24, 2020
    

Very helpful. Our children and us are are confident in your group.

-Anonymous, Fargo, North Dakota
Client Review
August 24, 2020
    

"Very professional, covered all, expertise, friendly, peace of mind now."

- Anonymous, North Dakota
Client Review
August 24, 2020
    

So much of a client's high or low opinion of an organization depends on their welcomed feeling. I felt that every time I visited the office, every person I talked with listened and took action on my concern or questions! They were also very friendly.

~J.R., Grand Forks, ND
Client Review
August 24, 2020
    

From phone calls to signing the final documents I was treated with respect, kindness, and understanding by Wayne & Jenn. Every business that wants their business represented well should have someone like Jenn & Wayne. They both made me feel relaxed and assured I was at the right place at the right time at this time in my life. 

~ Deborah Rucinksi, North Dakota 
Client Review
August 24, 2020
    

All of the paperwork was completed in a timely matter. Wayne was very good in explaining the trust to us. 

~Anonymous
Client Review
August 24, 2020
    

Thank you for taking care of my finances after I am gone. I worried about probate once; hopefully this has been solved. Everyone was very polite and helpful. Thank you Katie for answering my questions, and also Jenn.

- Anonymous
Client Review
August 24, 2020
    

This Avvo rating is killer and so deserved! You are the best brother! The only thing is I think the 10 rating is too low, in my book you go to 11! Congratulations on the award, you should be very very proud. See you at your Holiday party, thx for the invite.

Anthony G., Los Angeles, CA
Client Review
August 24, 2020
    

Everyone at German Law was helpful and pleasant. I felt good about my decision, I thought I was doing the right thing for myself & my family. Wayne took his time and didn't rush, which is good because a lot of this can be over people's heads.

A.W., Red Lake Falls, MN
Client Review
April 15, 2021
    

Excellent

Very interesting, informative and valuable information and ideas.

Valuable information.

RP
Client Review
April 15, 2021
    

5 STARS! Thanks for allowing this to be on a webinar! Very interested in this topic.

Great Estate Planning Guide

SD
November 25, 2022
    

John provided very short turn-around time that we needed. He built an amortization schedule that really met our needs. He was responsive and very easy to work with! Quick and easy!

 

Cammy was also very helpful and professional!

November 25, 2022
    

Really Liked it.
Assisted by John Oelke

November 25, 2022
    

Excellent!

<
>

Subscribe to Our Blog

Subscribe to our blog to get the latest estate planning news and updates!
  • This field is for validation purposes and should be left unchanged.

FREE ESTATE PLANNING WORKSHEET

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

Where We Are

German Law
2650 32nd Avenue South, Suite O
Grand Forks, ND 58201
Phone: (701) 738-0060
Fax: (701) 738-0064

See Larger Map Get Directions

Office Hours

Monday8:00 AM - 12:00 PM and 1:00 PM - 5:00 PM
Tuesday8:00 AM - 12:00 PM and 1:00 PM - 5:00 PM
Wednesday8:00 PM - 12:00 PM and 1:00 PM - 5:00 PM
Thursday8:00 AM - 12:00 PM and 1:00 PM - 5:00 PM
Friday8:00 AM - 12:00 PM

Map

Footer

  • Speaker Connection
  • Advantages of Working With Our Firm
  • About The American Academy
  • Sitemap
  • Contact Us

Connect to Us

  • Facebook
  • Twitter
  • Linkdin
  • Instagram
  • Youtube
footer-logo

© 2023 German Law
All Right Reseved.

Attorney Advertisement