The position of successor trustee can be of critical importance to your family.
That’s because providing concise proactive service in advance can make the difference between a seamless transition and the unfortunately too-common scenario where the surviving family suffers extra pain and expense. This suffering can even escalate up to the high drama of lawsuits and the destruction of family relationships as well as damage to individual productivity and self-esteem.
Specifically, the suffering is caused by not addressing your key family issues before the successor steps in as active trustee. You may not want your family to meet your successor for the first time at the hospital.
By not addressing your family issues in advance, your family — and your successor trustee— may well face some serious PROBLEMS with dramatic IMPACT, such as:
PROBLEM: The successor has been deprived of developing a trust relationship with the beneficiary.
IMPACT: The successor can be handicapped in efforts to advance your program, create unity, and mediate disputes.
PROBLEM: A failure to manage each beneficiary’s expectations of the trust’s provisions.
IMPACT: Bad feelings and disputes can surface.
PROBLEM: No understanding is established on how to deal appropriately with differences between the beneficiaries.
IMPACT: Adversarial relationships can degenerate and even spin out of control.
PROBLEM: No decision-making mechanism is agreed to by the family around health care or end of life.
IMPACT: Un-channeled high emotions can get in the way of family serenity and in carrying out your wishes.
PROBLEM: No replacement governance for family businesses is agreed to.
IMPACT: Disputes can undermine business continuity and profits.
PROBLEM: A failure to anticipate the post-transition dynamic of a blended family.
IMPACT: The family can split and fall into dispute.
Photo by Afif Ramdhasuma on Unsplash© 2008 – 2023 Daniel P. Felix, all rights reserved.
