Why Should Parents Consider Appointing Adult Children as Trustees?

 Posted on September 30, 2024 in Estate Planning

Choosing a trustee to manage your trust and its assets is a crucial step in estate planning. The right trustee will administer the trust appropriately, be responsible when investing the assets, and distribute them to the beneficiaries. He or she will also make smart financial decisions on behalf of the beneficiaries, keep accurate records, and make sure any taxes are filed.

When making this important decision, the grantor — the person who creates the will — should consider appointing his or her adult child as the trustee where appropriate. In the article below we will discuss why adult children can be great choices for trustees and how to contact an Illinois estate planning attorney for help with creating and managing trusts.

Why Should I Consider Appointing My Adult Child as Trustee?

Every family is different. For some, appointing an adult child as a trustee may not be possible or prudent. For others, however, choosing an adult child to manage a trust can have several benefits:

• Trust and reliability: Appointing a trustee who you can rely on to administer the terms of the trust correctly is not a given. An adult child who is loyal to you and will act in your best interests can give you peace of mind, knowing your trust is in reliable hands.

• A grasp of family dynamics: A non-relative trustee, even one who is a good friend, may not sufficiently understand your family dynamics. An adult child, however, is more likely to have a firm grasp of the personalities of different family members. He or she can anticipate their needs and objections and may be able to prevent family conflicts that sometimes arise when a trust is administered.

• Saving costs: Hiring outside trustees can cost you. Corporate trustees charge a percentage of the trust’s assets on an annual basis to manage them. An adult child may be willing to accept a lower fee or none at all to be the trustee.

• Care for the beneficiaries: A trust is administered best when the trustee cares for the beneficiaries. As a member of the family, an adult child is likely to ensure all assets are distributed precisely.

How to Choose an Adult Child as a Trustee

While appointing an adult child as your trustee may be a good idea theoretically, you should consider taking the following steps when making the appointment:

• Choose the right child: Some families have more than one child, and some are more capable than others. Others may be capable but lack the loyalty required for the role. Make sure to choose the right adult child for the task.

• Consider appointing a co-trustee: If you are unsure your child knows how to administer the trust, or if you feel he or she may be unable or unwilling to do it, consider appointing a co-trustee. This is a second trustee that can share your child’s responsibilities to make sure the trust is administered correctly. You may also consider appointing a successor trustee to take over in case your child cannot or will not serve in the role.

• Provide training: Your child may not understand how trusts work or how to administer one. Consider hiring an estate planning attorney to walk him or her through the process and provide training on trust administration.

Contact a Kendall County, IL Estate Planning Lawyer

Choosing an adult child as a trustee can be a great decision that benefits you, your assets, and the trust’s beneficiaries. Hire a Yorkville, IL estate planning attorney to guide you in making the right choice. At Gateville Law Firm, we are knowledgeable in all trust-related matters and will provide you with personalized legal services for all your estate planning needs. Schedule a free consultation by calling 630-780-1034 today.