 
Who has Powers in the Trust?Individual Trustee or Co-Trustees?
A single Trustee can act and manage alone with total control. A co-trustee requires both (or a majority) of co-trustees to agree.
Otherwise...Without a trust, the government has all the powers. Government usually allows the married spouse to continue with many powers, but with limits. Problems with a Will? -If you have a will, the same is true, except the court often takes control and makes decisions, especially on estates larger than a base amount. This usually results in relatives receiving whatever may remain after all attorney fees, court costs, losses from time wasted, and disputes. The distributions and remaining benefits can be very different than the provisions in the will. This may also happen in the case of a trust that is created at death or by provisions of the will.Trustee Selection -Normally, the creator or the person that owns the asset would be the trustee and retains power. Originally, a decision is made by the creator to have a single trustee or require co-trustees. A backup trustee is also selected and is called a "Successor Trustee". The successor trustee only assumes power upon the inability of a trustee. A properly designed trust allows you to change your trustee and successor trustee appointments.Who to Name as your Trustee? -Basically, you should appoint honest and smart decision makers to manage a trust. Assign someone with experience in signing documents and that will act with your wishes and intent in their actions. Often, a "Statement of Wishes" is included with a trust as a guide.Name Your Trustee -Almost anyone, such as a relative, a friend, or a company could easily be in power as a single individual or co-powered with any number of people. Usually, the creator or their married spouse are the trustee(s), therefore in power. Usually, two or more are empowered, but only one is necessary, especially if successor trustee(s) are appointed.Co-Trustee Powers -One potential problem with shared power is that there might be disagreement between trustees at some point as to a trust management decision. This could happen even if you name an odd number to assume power. Provisions should be made to avoid these problems and resolve decisions. Without resolution, or a plan to resolve disputes, a court resolution might be required.The more people that share power, the more difficult it becomes to make decisions. One alternative is to require only one person as a decision maker, while still naming more than one person capable to use the power. Qualify your Trustee -The most important issue is that a responsible, honest, knowledgeable person is named to each position of power. Someone that is not too conservative to make money decisions and understands contracts and documents. Someone that respects your values and intent to protect and provide for the correct beneficiaries. Someone that will not incur huge management expenses or waste the benefits controlled by the trust.Trustee Options -The solution could be that one trustee that is experienced in real estate is named as the trustee for the home, and a different trustee is named that manages the business and vehicles. Of course keeping each asset isolated in their own separate trusts (that own separate assets) allows easier management. |