What is a trustee and how do I choose one?

admin — Mon, 06 Feb 2012 21:39:20 +0000

The general definition of a trustee is a person, or entity (like a bank), who holds and manages assets for the benefit of others. When Beller & Bustamante attorneys draft a will, we want our clients to nominate someone to take care of any property or money that shouldn’t or can’t be given directly to the beneficiary. For instance, your children may be over 18, but if you die many years in the future and some of your assets go to grandchildren who are under 18, they can’t legally manage the assets. A judge will have to appoint a trustee. Or maybe you don’t want one of your beneficiaries to get the property directly, you want someone else to manage and use the property to help the beneficiary. You need a trustee.

With small estates, most people choose a person who is good with business or money, and is trustworthy and responsible. The trustee does not have to be a relative, and the trustee does not have to be someone you are leaving money or property to.

Also, if you have minor children, you can appoint a trustee who is different than the guardian – the person responsible for raising your children until 18. You may have a loved one who you know will be the best person for caring for your children if the worst happened, but that person may not be great with money or you don’t want to overburden them. Just make sure you choose a guardian and trustee who will get along. You don’t want the person raising your children fighting with the person who controls the money to help raise them.

Beller & Bustamante attorneys will ask who you want to appoint as a trustee. We will also ask if you have an alternate trustee if the first person you nominate can’t do the job. Think about this very important role and who the best fit is for your plan.

What is a beneficiary?

admin — Tue, 31 Jan 2012 21:38:11 +0000

Your beneficiary is a person or entity (like a charity) who will get assets from you or your estate. They could be a beneficiary of an insurance policy, a trust you have established, or the property or money you leave behind (your estate) when you die. It is important to designate the people or entities you want to receive your assets. It’s also important to think about who would get those same assets if your beneficiaries die before you, or the charity has closed, and you haven’t changed the beneficiary designation.

Most of us know who we want to get our assets when we die – our spouses, our children, a relative who has financial need, our church, or charity that is near and dear to us. These are your beneficiaries. Beller & Bustamante attorneys help to make sure your beneficiaries get what you intended for them.

For instance, you can’t give your home away if you still have any children under 18. And if there is a mortgage on the property, you have to think about how the mortgage will be paid so the house won’t be lost. Also, you can’t give property or money away if it is jointly titled with someone else (the joint owner may automatically get the property, depending on the title). And the specific property or amounts of money you want to give away today may not be there when you die.

Making a will starts with a clear plan as to what you have and who your beneficiaries are. Beller & Bustamante attorneys then help ensure that your plan is clear, does what you want it to do, and is legally enforceable.

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What is a trustee and how do I choose one?

What is a beneficiary?