Advice for naming a successor trustee
Alice Elkin, Special to The Gazette
Monday, July 19, 2010
You have visited with an estate planning professional and are now to the point of determining who to name as your successor trustee. This is a very vital position within your plan. Your successor will take over for you in building, managing and protecting your assets if you become incapacitated or upon your death. Although you can name any individual to be your successor, the benefits of naming a corporate trustee are many.
A corporate trustee is a regulated trust company or bank trust department. The officers and employees of a corporate trustee have the education, training and years of experience to manage your assets and handle your financial affairs appropriately. Because they manage trusts and estate administration on a daily basis, they have the knowledge in different tax, investment, and estate planning strategies. Most individuals are not experienced in trust administration. Naming an unqualified individual as your successor trustee can become a burden on that individual and could put your estate plan in jeopardy.
Your successor trustee is fully responsible for managing the assets according to your instructions. Since, unlike an individual, the corporate trustee is regulated by state and federal agencies, you will have the peace of mind knowing your instructions will be followed. In addition, the corporate trustee won’t die, move away or be distracted by emotions. The corporate trustee will objectively follow your instructions while maintaining a professional relationship with your heirs.
The benefits of naming a corporate trustee are great compared to the nominal fee charged by most trust companies. For a small percentage of the value of managed assets, you receive personal interaction with experienced and qualified personnel, objective and professional financial advice, a high degree of regulation protecting your assets, confidentiality, and peace of mind for you and your heirs.
As you are working through the process of establishing a trust, or are reviewing your existing estate planning documents, make sure to visit with corporate trustees and compare the benefits. Ask about their level of experience and investment returns; but also make sure you have a company that cares about you and your family’s needs.