If you're considering naming a Bank, Corporate Trustee, or Professional Trustee to manage your Trust or estate plan, here are sample questions to help you vet and select the right Trustee for your family.
Background
- How is your trust company arranged (e.g., one person, a staff, part-time help)?
- If you have a staff, would I work with you or be assigned a case manager?
- What would the beneficiary have to do to review the records?
- How many of these trusts are special needs trusts?
- What services do you provide as trustee (e.g., record keeping, accounting, investments, making distributions)?
- Are you also willing to serve as executor or durable power of attorney?
- (If applicable) Do you serve as a trustee for special needs trusts?
Investment Management & Decisions
- How would you decide on appropriate investments for the trust?
- Can the beneficiary or a trust committee assist in making the investment decisions?
- What are the qualifications of the financial person who has been hired?
- How often are the investment decisions reviewed?
- If a beneficiary wants to review the records of his trust, can he do so?
Set-Up Procedure
- If you were named Trustee (or successor trustee) of this trust, how would we begin the process (e.g., a meeting, a letter, a welcome packet)?
- Do you set up a budget for distributions?
- How often is the budget reviewed?
Requesting & Handling Distributions
- How would a beneficiary contact you to request a distribution?
- What kind of procedure do you go through in determining whether or not a distribution is warranted?
- If there is an emergency after normal business hours, is there a way I can contact you?
- If you are on vacation or otherwise unavailable, who would handle the management of your trust duties?
- What would happen to your business if you became incapacitated or died? Do you have a succession plan?
Fees
- How do you charge for your services? What is the fee?
- What is included in that fee?
- Is there an additional charge for investment services? How much?
- Is there an additional charge for tax preparation?
- Are there any additional charges?
