This Month's Harvest - The Surprising Cost of Naming the Wrong Trustee
Hello, You know how clients spend months—sometimes years—perfecting their estate plans. They choose the right structures, strategize around taxes, and carefully distribute wealth. But one decision can quietly undermine it all: who they name as trustee(s).
The Issue - Many clients default to naming a friend, child, or business partner as trustee, but many INDIVIDUAL TRUSTEES do not know what they are doing. On the surface, it feels personal and cost-effective, but trustees carry legal, fiduciary, and administrative responsibilities that most individuals are unprepared—or unwilling—to manage long-term.
Only after an unqualified trustee makes a mistake you must fix do you appreciate the importance of a qualified trustee. We’ve seen it time and time again. Poor administration that leads to family disputes, tax missteps, and investment delays - and who did the client blame first? The advisor who didn’t flag the risk.
ALL professionals should be considering…
Is the trustee capable and impartial? - Emotional bias or lack of financial literacy can lead to bad calls.
Is the trustee long-term viable? - Age, health, proximity, and the ability to respond to complex situations matter.
Is the advisor looped in? - Trustee selection should always include the advisor’s perspective—especially when investment oversight is critical.
Learning the nuances to avoid these pitfalls is easy and quick. Below is a paper written by a seasoned estate planning attorney explaining why individual trustees don’t know what they are doing.
Don’t let a well-crafted plan fall apart at execution. We’ll guide your clients toward trustee decisions that protect their legacy and your relationship.
Turning your growth into a full harvest!
Christopher Holtby - Co-Founder, National Sales Director
Disclosures Please be advised that nothing in this newsletter may be interpreted as legal advice specific to any one individual or situation. For specific recommendations that pertain to you, it’s best to consult with a legal advisor.
