I am creating a trust. Should I allow the beneficiaries to change trust companies? This is something that you want to consider carefully before you create your trust. It is not unusual for differences of opinion to arise between trustees and trust beneficiaries. While some conflict is to be expected, it’s possible that the relationship could become contentious and irreparable. What will happen if the beneficiaries do not have confidence in the trust company managing the trust assets? How can you help resolve a future problem when you create a trust?
It Depends on the Terms of Your Trust
When you set up your trust, you might want to take these options into consideration:
- A trust that allows for a change in the trust company. Setting up your trust this way may allow beneficiaries to change trust companies with minimal hassle. However, you may want to stipulate certain conditions, so that your beneficiaries do not abuse this option or request too many changes.
- A trust that does not allow for change in the trust company. If you do not allow the beneficiaries to change trust companies, there may still be a way for beneficiaries to get a new trustee appointed if a conflict arises that cannot be resolved. However, it may be more complicated and more expensive than necessary.
I am creating a trust. Should I allow the beneficiaries to change trust companies? You cannot predict the future, and you can’t account for every potential problem between your beneficiaries, trustee, and a trust company. However, you can talk to your estate planning lawyer about your options, so you can be confident that any future problems can be managed to uphold your trust and ensure that your wishes are honored.