Can I Appoint Multiple Trustees?

Note: The following article is part of our Complimentary Articles Series, designed to provide additional insights and detailed information on specific topics within estate planning.

Alongside this article, we suggest exploring our pillar articles for a comprehensive understanding of general estate planning issues.

• Should I Have a Trust?
• Why Gift Assets into a Trust During My Lifetime?
• When Should I Consider Getting a Trust?
• What is a Trustee?
• How Do I Remove a Trustee?

INTRODUCTION

Appointing Trustees is one of the most important parts of setting up a Trust, and knowing who to rely on is critical for protecting and managing your assets.

We receive a lot of enquiries on whether more than one Trustee can be appointed. And while the general answer is "yes," it's worth pointing out the factors that come into play when deciding how many Trustees to appoint.

This article briefly covers those factors that enable you to make an informed decision, ensuring your Trust is managed effectively and aligns with your estate planning goals.

For context, we recommend you read our related articles on Trusts.

THE ADVANTAGES OF MULTIPLE TRUSTEES

It is perfectly acceptable to appoint more than one Trustee, and doing so would be considered a sound strategic decision.

Having multiple Trustees ensures continuity if one Trustee cannot carry out their duties and allows you to split duties and responsibilities. Multiple Trustees also bring various perspectives and skills to the management of a Trust – something you may wish to consider in the case of larger Trusts.

Here are the three main advantages of having multiple Trustees:

• Broad Expertise: Look for Trustees who can contribute various skills, including finance and legal knowledge. Familiarity with the needs and circumstances of the Beneficiaries is also essential.

• Continuity: With multiple Trustees, you're assured of ongoing management without the risk of interruption if one Trustee retires or is suddenly unable to fulfil their duties (accident, illness, death).

• Fiduciary Oversight: Multiple Trustees can counterbalance each other, thereby minimising the risk of potential mismanagement or abuse of the Trust assets.

FACTORS TO CONSIDER WHEN APPOINTING MULTIPLE TRUSTEES

• Make Compatibility a Top Priority: If you appoint multiple Trustees, ensure compatibility and balance among the decision-makers. Since Trustees will be making decisions about the Trust, it's vital to ensure relationship dynamics between the Trustees don't impede this fundamental process. Pick people with good communication and listening skills and who work well together.

• Lay Out Clear Roles and Responsibilities: To reduce potential conflicts, ensure that each Trustee's role and responsibilities are clear in the Trust Agreement.

• Ensure Seamless Decision Making: To avoid situations of potential deadlock, establish clear communication and decision-making procedures beforehand. Decide whether any decision should be based on a unanimous vote or whether a simple majority is sufficient.

• Communication: Ensure all contact details are frequently updated, and there's a formal communication and response (time) process between and among Trustees and Beneficiaries.

• Terms: Each Trustee's rights, obligations, and responsibilities should be detailed in the Trust Agreement, along with the procedure for handling disagreements.

Need to know more?

If you're unsure who to appoint as Trustees, Squiggle can provide some clarity and direction, helping you tailor a plan that suits the unique circumstances of your loved ones.

Book a callback, and we'd be happy to arrange a no-cost, no-obligation discussion with you to lay out the options available.

Alternatively, call us on 01233 659 796.

Or reach out to us here.