Many people simply name the same person as both personal guardian and property guardian (or Trustee if you have a trust) for their children. However, you may decide that the person you feel can best raise and nurture your children is not the best choice to manage a large financial portfolio. Perhaps you want your child’s financial support to be managed conservatively, but the physical guardians are free-spenders.
When choosing a Trustee, you should select someone whose attitude towards money is similar to yours—or perhaps similar to what you aspire to. The Trustee should be someone you can trust to follow your instructions and not be tempted to take advantage of their position.
You can give the Trustee wide latitude as to amount and timing of distributions, or you can create a detailed plan for what, when, and how you want the money distributed. This is a delicate balance between providing the Trustee the flexibility to provide for your children’s unforeseeable needs and ensuring that your primary goals are met (e.g., paying for college, wedding) before the money is depleted.
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