Charitable Remainder Trusts

Estate Planning > Presentation Topics > Charitable Remainder Trusts

 
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17. Who Can Be Trustee?

Now, who can be trustee? Remember, when you set up the trust, you'll need to name a trustee to manage the trust assets.

You can be your own trustee or name another individual if you wish. But you must be sure the trust is administered properly - otherwise, you could lose the tax advantages and/or be penalized. Most people who name themselves as trustee have the paperwork handled by a "third party administrator."

Because of the experience required with investments, accounting, and government reporting, some people choose a corporate trustee - that's a bank or trust company that specializes in managing trusts. Some charities are also willing to act as trustee.

If you set up a unitrust, the amount of your income will depend on the trustee's investment performance. So make sure the trustee you choose has a good investment record.

 

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