Navigating the complexities of estate planning can be daunting, and while many individuals consider acting as trustee for their loved ones’ trusts, utilizing a professional trustee – such as an attorney like Steve Bliss – offers distinct advantages and disadvantages that deserve careful consideration. Approximately 60% of Americans do not have a will, let alone a trust, highlighting a widespread lack of estate planning, and for those who do establish trusts, the choice of trustee is paramount. A professional trustee brings expertise, impartiality, and a level of continuity that can be invaluable, but at a cost.
Should I Pay Someone to Manage My Trust?
The primary benefit of a professional trustee is their expertise in trust administration, probate law, and financial management. They are well-versed in the legal requirements, tax implications, and investment strategies necessary to effectively manage trust assets. Steve Bliss, as an experienced estate planning attorney, possesses a deep understanding of these intricacies, minimizing the risk of errors or omissions that could lead to legal challenges or financial losses. For instance, many trustees unknowingly violate the ‘prudent investor rule’ leading to potential lawsuits and asset depletion. This rule requires trustees to invest and manage trust assets with the same care, skill, prudence, and diligence that a prudent person acting in a like capacity and familiar with such matters would use. This expertise comes at a cost, typically ranging from 1-5% of the trust assets annually, but can be well worth it considering the potential pitfalls of amateur administration.
What Happens If My Trustee Can’t, or Won’t, Act?
Impartiality is another significant advantage. Family members, while well-intentioned, may struggle to remain objective when dealing with beneficiaries, leading to disputes and strained relationships. A professional trustee, like Steve Bliss, provides a neutral third-party perspective, ensuring fair and equitable treatment of all beneficiaries. I recall a case involving a mother who entrusted her son with managing a trust for her grandchildren. Initially, it seemed like a perfect solution. He was devoted to the children and appeared responsible. However, years later, disagreements arose regarding distributions for college expenses, escalating into a bitter family feud. Had a professional trustee been involved, the situation could have been handled with greater objectivity and prevented a significant rift within the family.
Are There Hidden Costs to a Professional Trustee?
However, professional trustees aren’t without drawbacks. The primary disadvantage is cost. Fees can significantly reduce the overall value of the trust assets, especially for smaller trusts. It’s crucial to carefully evaluate the fee structure and weigh it against the potential benefits. Beyond the direct fees, there’s also the potential for reduced control. As the grantor, you relinquish some decision-making authority over the trust assets. While you can specify certain guidelines in the trust document, the professional trustee ultimately has the discretion to manage the assets according to their professional judgment. We had a client, old Mr. Henderson, who reluctantly agreed to a professional trustee after years of resisting the idea. He was fiercely independent and wanted complete control of his estate. His initial reluctance stemmed from a fear of losing control and the associated costs.
How Can I Ensure a Smooth Transition with a Professional Trustee?
Mr. Henderson, though skeptical, finally relented and appointed Steve Bliss as co-trustee with his daughter. He meticulously outlined his wishes in the trust document, and Steve worked closely with both him and his daughter to ensure a seamless transition. Within a year, Mr. Henderson’s health began to decline, and he became increasingly reliant on Steve to manage the trust’s financial affairs. His daughter, relieved of the administrative burden, was able to focus on spending quality time with her father. When Mr. Henderson passed away, the trust was already being administered efficiently and effectively, avoiding the delays and complications that often arise with amateur trustees. Ultimately, the cost of the professional trustee was a small price to pay for the peace of mind and the smooth administration of his estate. Choosing a trustee is not simply about saving money, but about protecting the future of your loved ones and ensuring your wishes are carried out as intended.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- living trust
- revocable living trust
- irrevocable trust
- family trust
- wills and trusts
- wills
- estate planning
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “How does a living will differ from a regular will?” Or “What are the duties of a personal representative?” or “What happens if my successor trustee dies or is unable to serve? and even: “Can I be denied bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.