Three Major Benefits of a Corporate Trustee
Three Major Benefits of a Corporate Trustee
There are numerous decisions that need to be made throughout the estate planning process. One of the biggest decisions you will make is who to select as your trustee. Appointing a family member or a friend may seem like a great idea at the time, but it could turn into a costly mistake down the road. Here are three of the top benefits of a corporate trustee:
Impartiality
A professional trustee can help maintain family harmony by taking the emotion out of the decision-making process and avoid putting family members in difficult situations. When a family member serves as trustee, they may feel conflicted at times between doing what they think is right while being pressured by beneficiaries to do something different. Wanting to maintain peace within the family, they may make distributions and manage the trust in ways they do not feel are appropriate. As a corporate trustee, we bring an independent and unbiased approach to trust administration, ensuring the intent of the estate plan is carried out while protecting the interests of all the beneficiaries and preserving family harmony in the process.
Integrity
A trustee has a fiduciary duty to administer the trust in the best interests of the beneficiaries. Expertise in trust administration is a significant benefit a corporate trustee provides. Family members may have good intentions, but their lack of experience can often cause things to go awry. Unlike the family member, the corporate trustee has its own internal processes and controls in addition to being regulated and examined by outside auditors. Naming a corporate trustee brings a sense of comfort and peace of mind knowing that the estate plan will be followed, the trust will be professionally administered for the beneficiaries, and that the legal, tax, and investment requirements will be handled accurately.
Reliability
Reliability is very important when choosing a trustee in your estate plan, particularly because a successor trustee may not need to act until many years in the future. A corporate trustee is not going to become ill, pass away, move, or become unreachable. Naming a corporate trustee provides the benefits of continuity, stability, and peace of mind, knowing your trustee stands ready to act when needed.
Fiduciary Partners Trust Company offers all the benefits a corporate trustee brings you and your family. As an impartial, unbiased, neutral third-party trustee (or co-trustee), we avoid any real or perceived conflicts of interest in administering your trust. This helps protect family dynamics by preventing family member disagreements. We also understand each family has unique characteristics. We’re committed to understanding your needs today, so we can remain loyal to your legacy tomorrow. By partnering with your legal and financial advisors, we’ll provide experience and compassionate trust services to your beneficiaries.
Looking to learn more about corporate trust services? Contact us to get started.
Friday, June 18, 2021
Categories: Insights