Establishing a trust helps reduce the risk of probate issues with your estate and your asset distribution after your death. Assets placed in a trust are not subject to probate because they belong to the trust, not your estate.
The key to a successful trust establishment is choosing the right trustee to manage it.
Financial management skills
One thing that many people overlook is the importance of financial management skills for any trustee. Remember that the role is responsible for managing the funds in the trust and making disbursement decisions based on your wishes, so choose someone who is financially responsible.
When you establish a trust for several beneficiaries, the trustee must have an impartial position. Choose an attorney or a confidant with no direct personal relationship with any of the beneficiaries to ensure that no favoritism plays into disbursement decisions.
Another element that you need in a trustee is someone of strong will. This is particularly important when you have any reason to suspect conflict or challenges amongst your beneficiaries. For example, if you suspect that your children might argue about their shares of the fund, ensure that you appoint a trustee with a strong will who can stand up to them and ensure that they distribute funds according to your wishes.
Managing a trust is more complex than you might think, especially with multiple beneficiaries and significant assets. Choose your trustee carefully to ensure that your beneficiaries receive the assets and funds you designate for them.