Integrity, Experience Key to Choosing the Right Trustee to Carry Out Your Legacy

LOS ANGELES, Dec. 8, 2022 /PRNewswire/ -- Choose a trustee with the necessary technical knowledge, time, and people skills to carry out your wishes, according to the financial planning team at Los Angeles-based Westmount Asset Management ("Westmount"). While many grantors are inclined to choose a close friend or trusted family member, the inherent responsibilities and legal risks are significant, and the role can be akin to a full-time job depending on the trust and assets involved.

"I often counsel clients, 'don't simply be guided by someone's intellect,' when making this kind of decision," says Felicia Chang, Director of Wealth Strategy at Westmount. "Obviously, you want to select a trustee whom you esteem and trust to carry out your wishes, but there are a host of practical considerations as well."

An important consideration, she says, is the nature of the assets being transferred. Whether your balance sheet consists of an operating business, commercial or residential real estate, or securities, your trustee should be familiar with the tax attributes of those assets. Next, consider your would-be trustee's availability. If he or she has a demanding career or family commitments, or lives far away, you might be saddling that person with a sizable burden. Finally, consider the relationship between the trustee and beneficiaries, since the trustee will be responsible for determining how much and when a beneficiary receives funds from the trust.

"The trustee role can involve saying 'no' a lot—sometimes because a beneficiary's request is not consistent with your wishes or simply because it is not allowed by the trust," says Chang. "A trustee needs to be empathetic, diplomatic, and disciplined, with the fortitude to uphold the provisions of the trust."

For these reasons, friends or family aren't always the ideal choice. As an alternative, you might consider your CPA or attorney, a private fiduciary, or corporate trustee—typically a bank or other financial institution with the ability to administer client trusts. Regardless of who you choose, Chang suggests periodically reviewing your trust documents to ensure that the named trustee is still the appropriate person to carry out your wishes over time. For more information about this crucial decision, visit westmount.com/choosing-a-trustee.

Founded in 1990, Westmount is a leading independent investment advisory firm based in Los Angeles, managing more than $4.3 billion in client assets as of Sept. 30, 2022. Westmount seeks to bring clarity and purpose to clients' financial lives by providing objective, independent investment advice complemented by sophisticated financial planning. To learn more, visit www.westmount.com.

Media contact: Bart Zino, Marketing Manager: 310-556-2502 or [email protected]

SOURCE Westmount Asset Management