Everyone needs a trust, right? Well, sort of…. Let’s consider why you are creating a trust and whether you even need one in the first place.

Some family trusts have multiple trustees. Some trustees are put there because of their experience and breadth of knowledge, like the smaller, upscale trust companies that cater to the ultra-high net worth set. Why not have a pro-a corporate trustee — after all? Well, that makes sense. But what about those other, individual, co-trustees?

Are you a high net worth individual who is leaving tens of millions or hundreds of millions of dollars to your family in your estate plan? Maybe you have a massive family trust that you are creating or maybe you are transferring the family jewel-a multi-million dollar family business that you started from scratch. Who will run the business? Who will oversee the family wealth and be charged with maintaining and growing it? Who will protect it ? Who will take over for you?

Do you know what an offer of judgment does? These may be able to  get you attorney’s fees in West Palm Beachprobate lawsuits if you know how to use them properly. Failure to follow the specific guidelines could be disastrous though. Check out this recent case that went all the way up to the Florida Supreme Court because one party could not follow specific rules related to Florida’s Offer of Judgment Statute. 

Your Kids Hate Your Second Spouse.
Your Kids Will Sue Your Second Spouse When You Die.

Yesterday’s Wall Street Journal, www.wsj.com, reported on the status of Blockbuster Video, since it was acquired by Dish Network. “Bye-Bye for Blockbuster” reveals that its parent company will close the last Blockbuster stores, reports Wall Street Journal reporters Martin Peers and Shalini Ramachadran. Blockbuster’s demise is a great lesson for trustees, who invest and re-invest billions of dollars of family wealth for trust beneficiaries.

‘Though well-intentioned, creators of trusts and private foundations have the craziest ideas sometimes. They actually believe their heirs, their descendants, might get along, or even appreciate the wealth which has been left to them.

Are you and your sisters and brothers unhappy with the trustee of your family trust? Is your family involved with a dispute with your family trustee and trust litigation is the only way to resolve the difference?

What’s the best way to try to keep family harmony and let family wealth grow over time? Split up that family trust. Notice I didn’t say “bust up” the family trust. There’s a difference.

Does having multiple co-trustees run your family trust make sense? Many high net worth clients have pre-conceived notions of who should serve as trustee of a family trust and why. Some of those notions may be right on point, and should be implemented. Having bright people guiding your wealth makes sense. Other ideas of who should be a co-trustee may be well-intentioned, perhaps the product of success in the board room or corporate America, but mis-placed for the family trust setting. Here are a few things to consider when appointing the trustees of your trust, or your family trust.