Should I Use a Corporate Trustee?

Revocable living trusts have become a popular estate planning tool for managing assets, avoiding probate, and maintaining privacy during estate settlement. When establishing such a trust, you typically serve as the initial trustee while managing your own assets. However, naming a successor trustee is essential for situations where you become incapacitated or pass away.

The Challenge of Selecting a Trustee

Choosing the right trustee represents one of the most critical decisions in estate planning. While you can appoint almost any competent adult – including family members or friends – this choice requires careful consideration.

Why Consider a Corporate Trustee?

Experience and Dedication

Corporate trustees possess several advantages over individual trustees. They can dedicate full attention to trust administration and bring professional expertise in tax, legal, and investment matters that individual trustees may lack. You can structure this arrangement by naming a corporate trustee as the administrative trustee while hiring a separate registered investment advisor to manage investments, or consolidating both roles with a single entity.

Regulatory Protection

Corporate trustees operate under state and federal regulation, ensuring greater security for trust assets. Both corporate trustees and registered investment advisors must adhere to fiduciary standards, requiring them to act exclusively in beneficiaries’ best interests.

Succession Planning

You might name individual trustees initially while designating a corporate trustee as a successor. This hybrid approach provides continuity, since institutions don’t experience incapacity or death. Consider your specific asset types – such as securities, farmland, or commercial real estate – when determining who should manage them.

Conclusion

Many estate owners benefit from incorporating corporate trustee services into their planning strategies. Consulting an experienced estate planning attorney helps determine appropriate trustee arrangements when creating or modifying revocable living trusts.

If you or a loved one needs assistance with trust planning, do not hesitate to contact The Stegall Law Firm for guidance.