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The right trustee may be vital in avoiding some trust litigation

The decision to safeguard one's estate by the use of carefully established trust accounts may be the first step when one enters into the estate planning process. However, selecting who will be in charge of managing these accounts may make all the difference if one hopes to avoid some trust litigation issues. New York residents who are contemplating setting up these accounts may wish to seek more information regarding the role that a trustee plays. 

The trustee is the one who will manage the funds that are held for the beneficiaries. Part of the responsibility on this individual or firm is to ensure that those monies are invested wisely and in balance. If the trustee is investing too heavily in unstable markets or securities, then the trust runs the risk of running out of funds. On the other hand, lack of prudent investment would result in the trust not experiencing any growth, which would lead to its depletion over time. Along with ensuring that the trustees will practice careful investment policies, it may also be beneficial to discuss other important aspects of the trustee's business policies.

One of the most important matters to discuss is the fee structure that will be applicable to the beneficiaries. Every request for information and any time the trustee spends managing the funds will result in a fee. Having a set structure may enable the beneficiaries to calculate the costs of any interactions and can help make communication more effective for both parties. Conversely, not having set rates could result in exorbitant fees if any problems arise that require more efforts on the part of the firm.

Selecting the right trustee can make setting up a trust one of the best tools for estate planning. However, if a firm or individual is not a good fit for one's needs, then the cost to the beneficiaries could negate any intended benefits. Settling on the best estate plans is seldom an easy task, especially when one hopes to prevent the possibility of any challenges to one's wishes through trust litigation. New York residents may seek assistance in choosing the best tools by consulting an experienced estate planning attorney.

Source: investopedia.com, "Ensuring That Your Trust Is Trustworthy", Brian Bloch, Accessed on Oct. 15, 2017

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