STEP 3 : IDENTIFY THE RIGHT TRUSTEES cont.

The two most frequent objections that arise to professional trustees are: "Professionals are going to be expensive," and "Professionals won't know/understand/love my child."

First, as to cost: Assume a trust is set up for $250,000, funded upon your demise. If you appoint a family member, unless they have financial expertise, the first thing an individual would do as a prudent trustee, is hire an investment manager. Most of the time, fees for investment managers are 0.80% to 1.00% ($2,000-2,500/year). So, when looking at the cost of a professional, consider that in most cases, investment management fees are a given either way. Professional trustees, like Hope Trust, can charge as little as 1.10% on a $250,000 trust — and even less for larger trusts. In this example, the cost difference could be as little as $250/year. For just 63 cents per day, no family member or friend is being put out or assuming a fiduciary liability (yes, that's a Sally Struthers reference).

The second objection: "But how will a professional understand my loved one, and will they be there for them like family would?" Firstly, a good professional trustee will immediately get a care plan in place for your loved one so they know everything about their medical, legal, social, and financial needs. Even better, if parents create and maintain a care plan during their lifetimes, they can ensure a seamless transition to the professional. Interview professionals and find one you like and feel comfortable with. Ask about how they handle care management, do they have social workers, nurses, psychologists on

staff to help support your loved one. If the answer is yes, your child will have a level of support that family would be hard pressed to provide. Moreover, unlike family, professionals don't have other obligations like work, family, illness, or death, that will prevent them from serving your loved one's needs. The professional trustees, like Hope Trust, are under a fiduciary obligation to be there and be responsive throughout the lifetime of the trust.

Don't worry, a professional trustee doesn't cut your family out of the mix. There is still plenty for willing family members to do, and, if you choose, your family can still have oversight of the trust, without any of the daily work or risk. Where appropriate, consider roles like trust protectors for family members (to be discussed in detail in another article). Also consider family members for roles like healthcare proxy, power of attorney, guardian, conservator, or as executor of your will.

The role of trustee requires a deep understanding of financial, legal, and regulatory requirements, as well as a comprehensive understanding of the beneficiaries needs. The best trustee will ensure all available supports and resources are provided to your child, will check-in and make sure that they are thriving, and that the trust is being used wisely. Frequently, trustees interact and collaborate with siblings or family members, when they serve in the role of trust protector, guardian, or conservator. This is how the "love" is delivered, collaboratively, with the right people and professionals in the right roles.

GETTING TO KNOW YOU: A good professional trustee will immediately get a care plan in place for your loved one so they know everything about their medical, legal, social,and financial needs.