A revocable living trust is a flexible estate-planning instrument used for multiple purposes, including estate tax minimization and probate avoidance. Assets within a trust are managed by an assigned individual or institution, a trustee who is expected to be knowledgeable, fair and dutiful.

The default trustee for many small and large estate holders not only here in Florida, but elsewhere throughout the country, is often a spouse or adult child. Estate administrators recognize that assigning the job of trustee to a close relative is often a keep-it-in-the-family decision. But is choosing a relative the wisest choice?

Trustees have colossal power and enormous responsibilities. For some trustees, the job begins and ends after a trust maker's death with the collection and dispersal of assets. Some trustees must be ready to manage and invest trust assets wisely and indefinitely.

Impartiality is difficult for trustees who are beneficiaries of an estate. The temptation to play favorites among heirs or take advantage of estate assets for personal gain is tempered by laws that prevent a conflict of interest. Rules do not always prevent incidents of real or perceived misappropriation.

Objective trustees, like specialized attorneys or financial institutions, are paid to act in good faith according to a trust's terms. Professional trustees have no emotional ties to beneficiaries and are skilled in record keeping and asset management, a job which can be complex for many individuals to handle independently.

The person assigned a trustee role must have the capability and motivation to perform the job in the interest of all estate beneficiaries. Trustees who underperform or mismanage assets may be challenged in court and removed from the administrative position, a situation courts find common among quarrelsome relatives.

Choosing a family member as a trustee may be the correct choice, if the designee has the capability and motivation to perform the job in the interests of all estate beneficiaries. Estate experts agree that the decision to choose a competent trustee must include a careful examination of the talents and character of a prospective designee.

Source: emissourian.com, "Common Estate Planning Mistakes: Failure to Use a Revocable Living Trust -- Naming the Trustee ," Walter A. Murray, Jr., Feb. 1, 2012