You might breathe a sigh of relief when you finally create your estate plan. But you can’t simply sleep on your estate plan without revisiting it from time-to-time. If you neglect your estate plan, then circumstances can change, rendering your estate plan disadvantageous to your wishes. While this is certainly true when it comes to how your assets are distributed, it can also be the case regarding management of your estate and your trusts.
Is there ever a time when you should consider changing your trustee?
Yes. It’s possible to replace a trustee, and there are several circumstances that may warrant such a change. These include:
- When the trustee has passed away or has become incapacitated, such as when they’re mental health declines and they’re no longer capable of effectively managing the trust.
- When the trustee becomes overwhelmed by the thought of managing the trust and replacing them is the best way to ensure effective management.
- When the trustee has mismanaged the trust’s funds.
- When your financial goals have changed and naming a new trustee will help you attain those goals.
- When your relationship with the trustee has changed to the point that you no longer trust their judgment when it comes to managing estate assets and making investment and distribution decisions.
Because there are so many instances that may warrant changing a trustee, you should be sure to revisit your estate plan periodically.
Keep your estate plan up to date to protect your long-term interests
The estate planning decisions you make today will have a profound impact on the future of your estate’s assets and your loved ones’ financial well-being. It’s therefore crucial that you put in the amount of thought and effort necessary to build an effective estate plan that seeks to bring your vision of the future into reality.