What are the disadvantages of being a trustee?
What are the disadvantages of being a trustee?
Being a trustee is an important, but also challenging role. Actually, for some people, it's a chore—it involves a lot of work, and the checks don't come with raises. But there are other reasons that becoming a trustee might not be the best idea for everyone.
The first major disadvantage is that it requires you to take on more responsibility in terms of your finances. While banks would not expect one person to manage all of their money by themselves, this is what being a trustee entails.
Being a trustee means you can tell no one else about your financial situation. You cannot tell anyone when you deposited money or how much money you have in your bank account. The only exception to this is if you are both being trustees together for the same person—you can then talk to one another about what payments the person will receive. You also have to make sure that the trust-maker's money is separated from yours at all times.
You also have to be careful about telling others about your relationship with the trust-maker, especially if he or she has not told anyone that they appointed you as a trustee. This is a private matter, and you should always keep it that way for the trust-maker's sake and for yours as well. If you
Being a trustee of a trust is often a coveted position, but it does come with some disadvantages. The most obvious one is that you are responsible for the distribution of assets in accordance with the terms of the trust. This can lead to sticky situations, especially if there is more than one trustee overseeing the trust.
In fact, the more trustees there are, the bigger this problem gets. It's always possible that at least one trustee will disagree with another about how to proceed, and as a result there may be delays in making distributions or even disagreement about what distributions should be made.
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Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
