Many estate and trust professionals recommend hiring a corporate trustee to carry out the terms of your trust.1 This approach makes good sense - Given the level of experience and objectivity necessary to ensure the wishes of your trust are carried out just as you envisioned, a corporate trustee is certainly an option to consider.
The alternative is to choose a friend or a relative, which may save you a little money but may not deliver the same level of expertise and unbiased decision-making that you get with corporate trustee services.
Here are 6 distinct advantages you can get when you hire a corporate trustee for your trust management needs:1
1) Accountability
Corporate trustees should have sophisticated record keeping systems set up to ensure timely, accurate accounting of principal and income as well as delivery of regular statements to beneficiaries involved.
2) Long-Term Trust Management
Hiring a reputable and professional organization to oversee your trust helps to ensure that your trust assets will be managed with continuity for decades to come. A friend or a relative may become ill or incapable of managing the trust – a corporate trustee should always have backup.
3) Experience and Expertise of a Corporate Trustee
Good corporate trustees have knowledgeable, experienced professionals who are well-versed in tax law, accounting, and trust management.
4) Managing a Trust Impartially
Friends or family members who serve as trustees often have emotional ties that can influence decision-making for the assets. A corporate trustee can make objective decisions in an unbiased environment.
5) Liability Protection
Reputable corporate trustees carry insurance coverage and capital surplus, in the unlikely but still plausible event that a fraudulent investment or other situation affects the assets in the trust.
6) Regulation Compliance
A corporate trustee should strictly comply with State and/or Federal regulatory agencies, as well as audits conducted by an independent auditor at least annually .
Learn More About How Corporate Trustee Services Can Benefit Your Estate Plan
A trustee can encounter emotional family members with conflicting interests on how the assets in the trust should be treated. With a corporate trustee, you can take emotion out of the equation and have someone who will make decisions objectively and with unwavering focus on seeing your wishes through.
If you’d like to learn more about corporate trustees or would like some suggestions on how to search for and hire one, call one of our Wealth Managers at 1-800-541-7774 today. You can also send us an email to wealth@wrapmanager.com.
Michael is a Certified Wealth Strategist and Wealth Manager at WrapManager, Inc.
Sources:
