Why Appoint a State-Licensed, Regulated, Professional Corporate Trustee?

Benefits of Corporate Trustees

Corporate trustees are regulated and audited. Individuals, LLC’s and private trust companies are not subject to mandatory oversight by a government regulator.
Corporate trustees have management teams and trust officers with years of experience administering trusts and a broad range of knowledge in tax, trust law, financial planning and investment management. Often, individuals are not knowledgeable in all of these areas.
Corporate trustees are required to have succession plans in place to ensure continuity in the event of death or incapacity of key employees. This is not the case with individual trustees, LLC’s and private trust companies.
Corporate trustees are objective and will administer the trust in an unbiased manner. Trustees who are related to beneficiaries or have close personal relationships with them, may find it difficult to maintain their objectivity.
Regulated professionals have sophisticated software and systems to ensure proper accounting of principal and income. Individuals often do not have this software and may not understand the principles of trust accounting.

Selecting a corporate trustee to serve along with an individual may be a perfect solution. The trust gains the advantages of appointing a regulated professional while retaining a familiar, trusted individual to participate.
Co-trustee arrangements can also aid an individual trustee’s transition from active management to limited management.