Maryland residents may know that deciding on how to distribute money from a trust seems like the most important consideration when putting a trust together. However, it is just as important to appoint trustees who will follow through with the grantor’s wishes. After all, the trustee is the one who actually implements the intentions of the grantor regarding the trust.
The trustee has a great deal of responsibility. It requires sound judgment, technical skills, integrity, objectivity and discretion. The trustee must also be able to successfully deal with family members who are involved in the trust. He or she will have to follow the trust’s directives concerning to whom, when and how the trust is to be distributed.
Trusts deal with two types of beneficiaries. The first type, called current beneficiaries, are entitled to the assets immediately. The second type, called remainder beneficiaries, does not receive any distributions until some named point in the future.
Some special types of trusts may need trustees who have particular qualities. For example, marital trusts will minimize estate taxes and can provide for the financial needs of a surviving spouse. Special needs trusts can be set up to maximize outside resources and supplemental benefits for a disabled individual. These types of trusts may need people who are also qualified to manage them, such as someone who understands the outside resources for which disabled individuals are eligible.
Those who are considering creating a trust for their loved ones may seek the advice of an estate planning attorney. The lawyer’s experience could be crucial in ensuring that all available opportunities are realized. Maryland residents that seek to minimize tax consequences and/or avoid probate proceedings may benefit from investigating the advantages of this estate planning option.
Source: wealthmanagement.com, “Trustee Selection: A Matter of Trust“, July 15, 2015