You’ve Been Asked to Serve As a Trustee for a Family Trust

(adapted from Goldstone, Hughes, and Whitaker, 2016)

Next Steps: 

1 . Ask for a copy of and read the trust document. 

2. Answer the following questions:

The Trust:

-Who is the creator of the trust?

-Are you able to discern his/her purpose for the trust?

-When does the trust come to an end? Then what happens to the trust assets?

The Beneficiaries:

-Who are the beneficiaries?

-Who is entitled to receive distributions from the trust? Under what circumstances are distributions to be made?

The Trustee(s):

-Who are the current or co-trustees? Is there more than one?

-Which trustee responsibilities are you being asked to accept (Administration, Investments, Distributions)?

-When do you begin to serve as trustee (right away, when someone dies, some other time)?

Reaction/Reflection:

-Why did the trust creator ask you to be trustee? Do you believe his/her reasoning is valid?

-For which of the trustee’s responsibilities are you most comfortable/prepared? For which are you least prepared? Are you willing to take the initiative and spend the time to inform yourself on those areas for which you do not feel prepared?

-Are you comfortable overseeing the spending choices of the beneficiaries? Do you think that monitoring a family member’s money could change your relationship with them?

-Are you comfortable with the reaction of the beneficiaries and/or other trustees to your appointment as trustee? Can you discuss concerns with them? How will you manage disagreements or conflict?

-Would you be paid for your work as a trustee? How will that be determined? How do you feel about that?

-Are you comfortable with the potential liability associated with becoming a trustee