Who should my trust’s trustee or company’s manager be?

The answer to this question depends on many variables, but here are some general guidelines:

•  First and foremost, the trustee or manager should be someone you trust.

• It’s a good idea to choose someone who is on solid financial footing. When people get in financial trouble, the assets inside your trust or company, which they have access to, become very tempting for them to abuse.

• Use a family member only if you absolutely, 100% trust them, and (except maybe in the case of structuring a DEMMLLC) asset protection is not a high priority.

• If one desires maximum asset protection, the trustee or manager should not be an insider under the UFTA.

• Many banks offer professional trust services. They are completely impartial and will thus not be considered an ‘insider’.

• The trustee or manager should have sufficient skill and expertise to manage the company or administer the trust.

• If needed, they should hire a qualified CPA or tax attorney to take care of tax matters regarding the trust or company.

• If you have an offshore structure, make sure you know a skilled and trustworthy offshore manager or trustee who can take over when creditor threat arises.