Who to choose as a trustee?
February 22, 2010 9:26 AM Subscribe
Who to establish as a trustee?
posted by stormpooper to law & government (19 answers total) 1 user marked this as a favorite
We have to set up a trust for our son. However, the more I read about how a trust is set up and establishing a trustee and what their duties are, I'm stuck.
I want to make sure that our child (future children) are set up on a contingent/age basis after basic needs are met. Something like he has to earn a degree before getting x amount then the other amount at say 35 or something like that.
Second, I want to make sure that if only one person dies, I want to make sure the house is paid off, debt, takes care of education/basic needs, and if I am the only person to die, I want to make sure my husband buys health insurance for himself and our child since I am the sole supplier of medical benefits while I'm alive.
Granted, most of the inheritance is based on life insurance and the house.
Originally we were thinking his cousin but I think he would be swayed in giving him more than what is allowed since he's family.
Then I was thinking my best friend since she's more financially conscious and would stick to the plan. However, she also hates my husband.
Then I was reading about a corporate trustee but I saw there could be heavy fees and not sure how involved/complicated they can get in distributing cash. I worry that what if things don't go to plan with a set stipulation and in an emergency say my husband would need an extra $50k for a medical emergency or say rehab for our child if he got into trouble when he was 18 or something.
I know I"m getting ahead of myself with "what ifs" on the stipulations but I have to start getting this trust done but I just don't know where to start. I know a lawyer will give me all the pros and cons but really, he's just there to complete the paperwork. He can't help us make a true decision.
So, what's best? Cousin, best friend, or corporate?