It is critical to take your time when naming a trustee, picking someone you know will do a good job. Perhaps your first inclination is to pick one of your adult children. Maybe you have another relative that you can count on. Perhaps you want to use a professional. No matter what route you decide to go, take your time, consider the person very carefully and only make your selection when you feel fully confident that he or she can administer your trust properly.
After all, a trustee can get removed from a trust. This is chaotic for your estate plan and damage may already be done. Some reasons that this happens include:
- The trustee misuses the funds for his or her own gain. For instance, perhaps your trust was supposed to help your grandson pay for college, but your son or daughter decided to take money out to buy a house.
- The trustee does not follow all of the terms set up in the trust. For example, perhaps you created a trust that only pays out when younger heirs reach a certain age. The trustee decides to give them some money in advance, bowing to pressure from the other heirs.
- Hostility between the beneficiaries and the trustee. Perhaps the two never saw eye-to-eye, or maybe the beneficiaries believe the trustee is mismanaging the funds. When open hostility occurs and communication breaks down, it may be time for a change.
These are just three reasons of many, but they give you a good idea of why complications occur. It is very important for all involved to know their legal options.