Why Use A Corporate Trustee?
Corporate trustees typically have a great deal of experience in the administration and management of trusts and are usually more efficient and knowledgeable in trust matters than non-professional individuals.
A corporate fiduciary is subject to many levels of oversight from internal auditors, outside auditors, and government regulators. This is all for the protection of the trust beneficiaries.
Reliable Professional Service
Corporate trust officers are assigned by the corporate fiduciary from a full staff of competent professionals to oversee and administer an account. There is depth of administration with a corporate fiduciary that is not present with an individual. If an individual gets sick or dies, there may not be continuity of administration. This is not a concern with a corporate fiduciary.
The corporate fiduciary is bound by the terms of the document and will administer the trust as it is written. Sometimes individual trustees have a tendency to favor one class of beneficiaries over another or to be subject to pressure from one class. While a corporate fiduciary may be subject to pressure, there is no personal benefit from favoring one over the other.
Advice and Referrals
Corporate fiduciaries have a network of professionals from whom they can get answers to difficult questions. They can refer beneficiaries to competent legal and accounting professionals when there is a need.
Peace of Mind
Beneficiaries can have peace of mind when dealing with a corporate fiduciary instead of worrying if the trustee is making the right decisions.
Most corporate fiduciaries have tax expertise, or have contracted with competent tax preparers, so they are able to handle trusts properly from a tax perspective.
Parents will often name an oldest child as the trustee of their trusts. Often the trustee is faced with difficult choices that are not always popular with the beneficiaries of a trust. When this involves family members, the named child is put in a situation that can cause conflict among the children. A corporate fiduciary does not face the personal issues among the family members that any of the children would face. This allows the trustee to make the best possible decision, preserving harmony within the family.
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