Sometimes people are unsure about whether their selected trustee is suitable to act as a successor trustee. You may be thinking of the process of estate planning and selecting your trustee. One way to discover the capabilities of your future Los Angeles trustee is to test his or her abilities now.
Creating a test trust to determine your child’s capability of managing money is not difficult. A test trust is usually a trust with little assets. Any person can create multiple trusts. You, as a parent may consider creating a test trust for the particular that you are considering as the main successor trustee of your trust. Here are the steps for examining the fitness of your successor trustee before trust administration in Los Angeles:
- Create the test trust;
- Fund it with a specific sum of money;
- Give instructions to your proposed trustee to invest the money;
- Ask your trustee for an accounting of the test trust;
- Evaluate the trust and the performance of the trustee in 6 months and in one year. Repeat.
Once you see the trustee’s actual performance, you can then determine, if your child is ready to be a successor trustee of your main trust and able to administer your trust in Los Angeles.
Mina Sirkin is a trust administration attorney in Los Angeles who is Board Certified as a Specialist in Trust Law in the State of California. Call for successor trustee capacity problems 818.340.4479 or email here.
