When it concerns selecting a successor trustee, the typical choice is a spouse, a member of the family, or a close pal. And for a lot of trusts, this is the most rational option– you’re looking for somebody who is close to you, who knows your recipients, and is devoted, credible, and capable of handling your trust properties.
What if your trust includes considerable possessions or your successor trustee is most likely to come across unusual challenges in administering your trust? In this scenario, you may wish to consider selecting an institutional trustee to do the job. An institutional, or professional, trustee is an individual or business beyond your circle of friends and family that focuses on administering trusts. Examples of institutional trustees include:
The trust department of a bank;
Especially in a scenario where your friends or member of the family might not have the knowledge or know-how to deal efficiently with the obstacles that can accompany the job of follower trustee, an expert trustee could be a suitable choice. Banks and trust business, for instance, typically have a variety of specialists on personnel to handle both regular and distinct matters as they emerge, they can function as objective decision-makers when a difference develops among recipients, and they tend to have deep and extensive knowledge of financial investment options.
However, professional trustees are not a proper choice for everyone, and they do come with downsides, including:
Cost. As with any other expert, engaging the services of an institutional trustee includes charges. Specifically if your trust is small, these costs might be cost prohibitive.
Your estate planning lawyer can assist you weigh your choices and decide whether an institutional trustee is appropriate for your trust.