Trustee as Mentor
Consider this idea: Have your trustee become a purposeful mentor to your beneficiaries. It’s a relatively new train of thought, but it’s an idea that we think is worth discussing and exploring. It’s not an endeavour to take lightly. Choosing a trustee to work as a mentor is not an insignificant administrative detail—there needs to be deliberate and careful thought around the process. That’s because there is a real art to mentorship. If practiced correctly, the benefits for you and your beneficiaries could be tremendous. We suggest that you have at least one professional trustee to handle the technical aspects of your trust, but also include one that takes on a purposeful mentorship role. Your trustees should be clear on your core values, and the overarching goals for the assets in trust. It’s also important to have meaningful discussions with your trustees about what is to happen once you are no longer here. Ensure that they know what is important to you, and confirm that they are willing to take on this role.
Consider drafting a “letter of wishes” to help guide your trustees. Essentially it is a roadmap that will highlight any opportunities and road bumps that you anticipate. Since it’s not a legal document, you can easily amend it, over time. Author and family wealth preservation expert James E. Hughes Jr., says that there are several key functions of a mentor. First, you may need to change your trustee and mentor as your children grow and need different resources. Keep expanding until you have all the skill sets and perspectives you need. Secondly, mentoring is about asking questions, not about giving answers. It is the mentor’s role to be open to all questions and to help engage the mentee by deepening those questions—not by providing answers. Lastly, it is crucial that the mentee feels that their mentor can help them to find perspective and enhance their self-awareness. This applies in reverse to the mentor; they need to feel that they can purposefully enhance a mentee’s self-awareness on their journey in pursuit of happiness. Lay the foundation for the relationship now—the benefits are well worth it.
