A trustee can be one person, multiple people, or what is called a “corporate trustee,” such as a bank or trust company staffed by people who manage and grow trust assets. People name corporate trustees for a variety of reasons, including:
If you have no one you can count on to administer your trust, or you don’t want to burden a loved one with the responsibilities of serving as trustee, a corporate trustee may be the way to go.
Avoiding family disputes
When one member of the family is named as trustee, other family members might feel slighted. This can lead to arguments and even legal disputes. A corporate trustee is unbiased and can help eliminate infighting between family members. Also, if you are unhappy with how trust assets are being managed, it is much easier to fire a corporate trustee than, say, your eldest son.
In the vast majority of cases, a corporate trustee will have far more experience managing trusts, and helping trust assets grow, than a friend or member of your family.
Many corporate trustees offer investment management, tax planning and other valuable services as part of their fee. If you have a large and complex trust, or a combination of trusts, a corporate trustee might be a good investment.
If you are considering a corporate trustee, you’ll want to ask all potential candidates the following questions:
- How much does the service cost and what services are included?
- How long has the trustee been in business?
- How many trusts has the trustee managed?
- What is the average amount of assets held in the trusts managed by the trustee?
We are here to help you decide whether a trust is right for your unique planning needs and goals. We can also help you choose the ideal trustee. Contact us at your earliest convenience for a personal meeting.