It Helps If You Know What You’re Looking For
If you love a good wine, then you know the feeling of finding the exact varietal or blend you want—the satisfaction of identifying traits you prefer, then uncorking one that hits just the right notes. Imagine that first pour at your favorite Napa Valley destination or the delivery of a wine flight at your favorite lounge . . . do you have a mental list of how you’ll approach this tasting? Aroma, body, color, clarity, texture—every factor must be weighed before you can decide which wines are worthy.
It's no different for any decision you make with complex criteria—though wine is certainly more fun to think about than, say, the list you might have when buying a new washer and dryer. And the complexity of wine is a perfect analogy for some of life’s tougher decisions because it’s not merely a checklist of elements you’re seeking, but whether those elements come together harmoniously for the desired end result.
Choosing the right trustee has unexpected similarities to wine tasting
Like that perfect wine selection, one of the most potentially complex decisions in life is choosing a trustee to represent your interests after you’re gone, or even before. Whether you’re just beginning work on a will or trust or you’re considering updating one, it’s never too late to realize you have a host of options in choosing the most trusted and capable person or firm. Is there a family member or friend who has the temperament, skills, and capacity for trustee duties?
Let’s call these first two options—a friend or family member—the “house wine.” They’re the simplest answer and they’ll get the job done. They may be lacking an item or two that would make them ideal for trustee duties, but to know what that is, you’re going to need to make that checklist. Top characteristics for managing trustee duties might be someone who is mature, organized, patient, financially and legally astute, and whose values are aligned with the estate's goals. A trustee has legal ownership of the trust assets and a fiduciary responsibility for managing them and fulfilling the intentions of the trust. They must maintain documents and records, pay taxes on behalf of the trust and oversee management of the trust assets and distributions to beneficiaries. It can be a daunting job description and one that some friends and family are unwilling or unable to shoulder.
A professional trustee might have the ideal “blend” of skills
But did you know that you have other choices? Just like that rare Bonarda waiting around the corner on your winery tour, perhaps you’ve never even considered a professional trustee. The professional trustee acts impartially to ensure the trust's objectives are met and to provide a level of accountability and continuity that can be especially beneficial for complicated trusts or situations involving significant assets, diverse investments, multiple businesses or intricate family dynamics.
A professional trustee may have an entire team of CPAs, investment advisors and attorneys in addition to their own expertise and experience in trustee duties. If your trust is expected to continue for generations, this institutional trustee team can provide the stability and consistency needed over the long run, whereas a family member working alone as an individual trustee would be burdened with the task of hiring and maintaining all the necessary professionals.
And if you simply don’t want to dismiss the personal connection from your criteria checklist, you can designate a professional trustee to partner with your family member or friend as co-trustees. Your appointed individual trustee will work in concert with the institutional trustee much like a well-chosen wine that perfectly complements a meal.
The decision is not just about expertise but about finding the right fit—a trustee whose values and qualities harmonize with yours and your family’s and with the objectives of the estate. It’s a delicate process for a difficult job. But with a thoughtful approach and your own good intuition, a carefully selected trustee will ensure the prosperity and preservation of your estate. Cheers to that!
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