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Trusts need trustees, but appointing them can be tricky

Many estate planning tools need to have an outside party in charge. For example, Arkansas residents who set up trusts need to appoint trustees or successor trustees to manage those accounts. As a result, it is important that individuals choose the right person, which is not always easy.

Even if parties believe that a close family member or friend will be an effective trustee, that person may not necessarily have the right qualities for the role. Some individuals may have a hard time putting their biases aside, and as a result, the trustee may not act in an objective manner, which is needed to handle a trust correctly. If a trustee cannot remain objective, conflict regarding the account could arise, making more complications for those involved.

Some individuals may think that appointing two trustees to keep each other in check would be beneficial to maintain objectivity. However, co-trustees can have problems of their own. For instance, the trustees must agree on decisions regarding the trust, and if they do not, it may be difficult to handle any of the tasks associated with administering a trust.

Though trusts are certainly useful estate planning tools, Arkansas residents need to ensure that they choose the right trustee or trustees. In some cases, looking outside the family or friend group for an unbiased trustee may be wise. If individuals are concerned about appointing the right person to this important role, they may want to discuss the matter with knowledgeable attorneys who can provide insight into the skills that make a good trustee and how to officially appoint a person or entity.

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