How many trustees must a trust have?
It is practical and advisable to appoint at least two trustees to a trust to ensure continuity and to prevent decisions from being made by only one person. The minimum required number of trustees should be defined in the trust instrument to avoid the abuse of trust assets.
Can a sibling serve as a trust trustee?
While in some situations it is appropriate for a sibling or other family member to serve as trustee, in many cases, particularly with a larger trust, naming a family member is not the best decision, for several reasons. First, clients fail to appreciate the amount of work involved in being a good trustee.
When does a family member serve as trustee?
When a Family Member Serves as Trustee – “Fair and Honest Is Not Enough”. Parents typically face two choices when selecting a trustee to manage a special needs trust for their child when the parents have died. One choice is a professional trustee–a bank or trust company or an individual who is in the business of serving as a trustee.
Who is the best person to serve as a trustee?
One choice is a professional trustee–a bank or trust company or an individual who is in the business of serving as a trustee. Of course, professional trustees charge fees, and many banks and trust companies have a minimum trust balance requirement in order to serve as trustee.
Who is the legal owner of a trust?
Since the Trustee is the legal owner, the Trustee can exercise his or her power unilaterally with no input required from the Trust beneficiaries. But the Trustee does not benefit from their legal ownership. Unless a Trustee is also a beneficiary, the Trustee does not receive a benefit from the legal ownership of Trust assets.
Why are siblings not allowed to be trustees?
No matter what they do they can’t win. If they are lenient with what their sibling wants they don’t uphold the original intent of the trust. If they adhere to the rules of the trust the other sibling is often offended. No one wants to have to write to their brother or sister to ask for money.
When a Family Member Serves as Trustee – “Fair and Honest Is Not Enough”. Parents typically face two choices when selecting a trustee to manage a special needs trust for their child when the parents have died. One choice is a professional trustee–a bank or trust company or an individual who is in the business of serving as a trustee.
Can a sibling win in a trust case?
No matter what they do they can’t win. If they are lenient with what their sibling wants they don’t uphold the original intent of the trust. If they adhere to the rules of the trust the other sibling is often offended.
How is a trust set up in a family?
If the trustor and the beneficiaries of a trust are members of the same family, it is known as a family trust, which can have one trustor or spouses acting as joint trustors. A family trust is set up by a legal document often known as a trust agreement, which usually designates an initial trustee or two or more initial co-trustees.