One of the most important distinctions between a revokable and an irrevocable trust, concerns who will be appointed as the successor or initial trustee. If you are putting together an irrevocable trust, naming yourself as a trustee would defeat the primary purpose of this estate planning strategy. Naming a successor trustee of a revokable trust or a primary trustee of an irrevocable trust, however, requires careful consideration about the person you are choosing to install in this role.
There are several important qualities to consider. First, this should be a person who you trust when it comes to their overall judgment and ability to manage your investments. Second, they should also be able to communicate and speak coherently with your beneficiaries. Third, they must understand how to legally transfer trust assets to those beneficiaries when the time comes. Forth, they should be capable of handling what could be complex financial transactions.
Some people choose to use a corporate trustee because the scope of the responsibilities of managing a trust might extend beyond that of a lay person’s knowledge. Appointing professional trustees also requires consideration about the fees that would have to be paid to this professional.
Bear in mind that this could reduce the overall value of assets inside the trust, when funds from that trust must be used to pay a professional trustee. If you have further questions about the estate planning process, schedule a time to speak with an experienced estate planning lawyer in NH.