If you are considering establishing a trust, as a part of that, you’ll need to choose a trustee. This is an important decision and should not be made lightly. If you are in the throes of choosing a trustee, you should take into account some important considerations.
The first thing you need to do is understand exactly what is entailed in being a trustee. It is not a position that ends quickly, and it requires a fair amount of expertise in a variety of areas; specifically, it will involve the investment of monies, paying bills, filing both quarterly and annual accounting reports, and otherwise managing the money on behalf of the beneficiaries.
The second thing you need to understand is that, as stated above, the position does not end quickly and often goes on for generations. As a result, choosing an institution to be your trustee, such as a bank, is often the more prudent decision. Humans die but institutions do not; and, if the institution is acquired by another one, then the acquiring institution will take over administration of the trust. However, even if you decide not to use an institution as the initial trustee, you should designate a more permanent entity as the successor trustee (e.g., a bank or trust company).
The third thing you need to understand is that it is possible to designate a family member as trustee, but it may not be the best decision. If you do opt for a family member it would be prudent to designate a successor trustee as well.