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Robert A. Imparato, Jr CFP®
CERTIFIED FINANCIAL PLANNER™ professional
Craig A. Hyldahl CFP®
CERTIFIED FINANCIAL PLANNER™ professional
R.I.C.H. Planning Group, LLC
105 Fieldcrest Avenue, Suite #507
Edison, NJ 08837
Robert: 732-326-5240
Craig: 732-326-5240
Fax: 732-326-5331
Robert: robert@richplanninggroup.com
Craig: craig@richplanninggroup.com
Website: www.richplanninggroup.com
November/December 2024
Choose a Trustee you Trust
Choosing a trustee can be relatively simple compared to setting up a trust. But not always. Money can drive a wedge between even the closest families, so choosing between a loved one, a professional advisor or a financial institution as trustee isn't easy.
Getting Started
Families who want to pass on wealth efficiently or ensure specific instructions are followed for the benefit of special-needs children may use a trust to facilitate their wishes. Every trust must have a trustee who has the legal and personal responsibility to carry out the terms of the trust.A trustee may need expertise in multiple areas, depending on the trust's complexity. For example, the trustee must serve as a business administrator to record financial activities, such as scheduled disbursements to beneficiaries, investment results, and more.
That person may also be responsible for managing investments, which even professionals have difficulty doing during volatile economic times. The trustee must also file local, state, and federal tax returns, even if the beneficiaries are receiving tax-free disbursements and may need to understand arbitration should a disagreement between the trust's beneficiaries arise.
Making the Choice
Finding a loved one who can serve proficiently in all these capacities can prove difficult, although this person could hire specific professional help like a CPA or arbitrator. After all, the advantage of having a loved one serve as a trustee is the person's familiarity with the situation. Knowledge of a loved one's philosophy makes it more likely the trustee will follow the original intention of the trust.However, emotions and even money could get in the way and cloud the trustee's judgments. For example, it's easy to see a conflict if a trustee who is also a beneficiary has to decide whether to grant emergency funds to a beneficiary, which could reduce the trust's principal and the trustee's share.
A financial institution serving as trustee might have the multi-disciplinary skills needed and would take the emotions out of decision-making. However, the institution might not have familiarity with the intentions of the trust's creator, the grantor. So, if you plan to create a trust, research your options before making a final decision.
GE-6952366.1(8/24)(Exp.9/26)
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Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services.
R.I.C.H. Planning Group, LLC is not owned or operated by Equitable Advisors or Equitable Network. GE-6572038.1 (4/24)(Exp. 4/26)
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