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| CHOOSING A TRUSTEE You may choose any person you want as a trustee of most trusts. You cannot choose yourself or your spouse for some trusts; but, in general, you may choose any human being. Also, you may choose any corporation licensed to be a trustee in the state where you live. For the most part, they are one of the following:
For this reason, you can choose one or more of your advisors; but, you cannot choose his firm if it is a corporation and is not state licensed to be a trustee. If you decide to choose an individual human being as trustee, be sure to choose one or more "standby" trustees who will act if your chosen trustee is unable or unwilling to act. Which is better? Individual or corporation? Usually, you are more knowledgeable of an individual and hence, may be more comfortable with this choice. However, individuals are not, generally, bonded. If you choose an individual and his secretary runs off with your money, you have lost everything. If, on the other hand, a corporate trustee's employee were dishonest, that trustee is bonded ... and the bonding company replaces the money. Can you bond an individual? Yes. But, the bond must be renewed annually and the premium must be paid each year. If your individual trustee should ever forget to pay the bonding premium, your trust might be at risk. In general, corporate trustees, while not perfect, are better than individual trustees. |
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