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Estate Planning: Selection Of Trustees

While transferring the property from the trustees to the beneficiaries, there are certain things that can take place in various conditions. While selecting the trustees, one thing has to be made sure that the ones who you are choosing to be your trustees actually have the knowledge of the use and the management of the property. There are various conditions where there are joint trustees. The joint living trust will enable the husband or the spouse along with the trustees to have full control over the property but in case the husband dies or any one of the above die then the wife or other spouse is regarded to be the sole trustee of the property. Therefore it can be seen that the ownership of the property as well as the place of the trustee is never empty. However, there are such times when both husband and wife die as in case of accidents or such. In times like these, the adult children are given the sole responsibility of the property. This way the trust is dissolved. However, if the children are minor, then the trust will continue where the trustee has the temporary ownership of the property.

The trust has to be handled by the successor trustee who takes the place of the prior one. The name of the successor trustee already has been appointed by the husband and wife beforehand for the conditions like this. In such agreements where the successor trustee is appointed, it can even be any close relatives so that the property is indeed managed even though the prior trustee is not present.

However it is very risky to appoint anyone as successor trustees in haste. The misuse and mismanagement of the trust can be seen happening very frequently. As this matter is very private, even the court does not discuss it.

As there is no such legal scrutiny, it is very important that the husband and wife or the granter choose such people who are highly capable of dealing with the affairs that are related with the property. In such conditions, a corporate trustee is appointed by the bank. There is certain specialized department dealing with such administrative issues as with trusts which provide highly competent and professional service. As these corporate trustees do not have any personal dealings with the beneficiaries as well as the granter, they only work according to their requirements.

At times corporate trustees are appointed along side adult child or surviving spouse for that matter especially when they have no experience in the field of wealth and property management. This way they can get professional service along with impartial decisions made for their own benefit. Such corporate trustees are paid for their service and their performances also affect the reputation of the whole company or bank in this matter. Therefore they are more aware of what they are doing and try to form more networks of people who trust them and will choose their service.

The selection of trustees solely depends upon the granter. However as it is the matter of the future and the kind of treatment that their children will get after their death, such selection should be made wisely as well as in a reasonable and logical pattern.

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