Choosing the right trustee is important. Some people choose to name a spouse, child or a friend as a trustee, but there are risks with doing this. During times of emotional turmoil, family members or friends may not be able to serve effectively. In addition, they may be unfamiliar with situations or lack investment knowledge. If individuals have never served as trustees, they often find themselves overwhelmed by the duties required of them.

They may, quite innocently, make an error in investment policy, accounting or distributing assets, which may cause conflict or expose themselves to personal liability. A friend or family member acting as trustee, especially one who has other responsibilities such as work and family, could forget to reinvest income or tender a security when a bond is called or stock is sold - costing the trust income.

Naming an independent fiduciary/trustee eliminates the technical difficulties and the emotional perils often involved when a family member or friend becomes a trustee. It will also assure that your wishes are fulfilled exactly as they are spelled out in the trust. Ellis Capital Management provides trust administration support for independent fiduciaries and is accustomed to dealing with these responsibilities daily.