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Things to consider when choosing a life insurance Trustee.

Their expertise, commitment, integrity, conflict of interest, costs, Size of trust and recovery in case of negligence.

Many people have life insurance that will benefit their children or other dependants in case they die. They may need to create a trust which will manage that wealth for the beneficiary.

A Trustee must be an adult with legal capacity to Contract. One must consider many factors before choosing a trustee. Things to consider may include if the person has the expertise required, integrity and commitment to take care of the money,

Choosing a family member as a trustee has some advantages in that they may know the family be more familiar with the grantors wishes. They may also be cheaper and charge less fees. than a professional trustee like a bank.

There are also disadvantages of appointing a family member as trustee. They may not have the expertise and time to manage the investment and deal with the tax, accounting and other administrative responsibilities required.

The family member may hire professionals to do these tasks, but this will cost him money and the cost advantages of having a family member trustee may be lost fast.

There may also be conflict of interest if the trustee is also a beneficiary and they may give themselves more money and not be fair to other beneficiaries.

Another disadvantage of having a family member trustee is that in case of negligence and waste of money, they may not have the money to repay it if you wanted to sue them.

The larger the trust, the more it is advisable to use a professional trustee like a bank who have the capacity and expertise to manage it.


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