CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
1021223-00005-00
William Orr, CRPC®
Financial Planner
WillO Financial Solutions
8888 Keystone Crossing, Suite 500
Indianapolis, IN 46240
Phone: 317-708-5589
Cell: 317-750-9964
Email: william.orr@prudential.com
November/December 2024
Choose a Trustee you Trust
Choosing a trustee can be relatively simple compared to setting up a trust. But not always. Money can drive a wedge between even the closest families, so choosing between a loved one, a professional advisor or a financial institution as trustee isn't easy.
Getting Started
Families who want to pass on wealth efficiently or ensure specific instructions are followed for the benefit of special-needs children may use a trust to facilitate their wishes. Every trust must have a trustee who has the legal and personal responsibility to carry out the terms of the trust.A trustee may need expertise in multiple areas, depending on the trust's complexity. For example, the trustee must serve as a business administrator to record financial activities, such as scheduled disbursements to beneficiaries, investment results, and more.
That person may also be responsible for managing investments, which even professionals have difficulty doing during volatile economic times. The trustee must also file local, state, and federal tax returns, even if the beneficiaries are receiving tax-free disbursements and may need to understand arbitration should a disagreement between the trust's beneficiaries arise.
Making the Choice
Finding a loved one who can serve proficiently in all these capacities can prove difficult, although this person could hire specific professional help like a CPA or arbitrator. After all, the advantage of having a loved one serve as a trustee is the person's familiarity with the situation. Knowledge of a loved one's philosophy makes it more likely the trustee will follow the original intention of the trust.However, emotions and even money could get in the way and cloud the trustee's judgments. For example, it's easy to see a conflict if a trustee who is also a beneficiary has to decide whether to grant emergency funds to a beneficiary, which could reduce the trust's principal and the trustee's share.
A financial institution serving as trustee might have the multi-disciplinary skills needed and would take the emotions out of decision-making. However, the institution might not have familiarity with the intentions of the trust's creator, the grantor. So, if you plan to create a trust, research your options before making a final decision.
Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. WillO Financial Solutions is not affiliated with Prudential Financial. WillO Financial Solutions sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. WillO Financial Solutions is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. WillO Financial Solutions and its representatives do not render tax or legal advice. Please consult your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
WillO Financial Solutions and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.