Choosing a trustee is an essential step when establishing a trust. Some people may already have someone in mind for this role. But others can find it challenging. In specific scenarios, an individual may have no close family members eligible to become a trustee, whether they do not meet the legal qualifications or lack the time and capacity to fulfill the position’s obligations. Fortunately, they may take a different route, such as hiring a corporate trustee.
This entity is a corporation or company that provides various trustee services for privately owned trusts. This option can be appropriate if the grantor has no one to appoint as an individual trustee. Employing a corporate trustee can present various benefits, including the following:
- There is a clear division of liabilities between the trustee and other involved parties.
- A streamlined process, often established by the corporate trustee, exists to carry out work or decisions involving the trust.
- Corporate trustees have extensive experience in legal and finance, which can benefit the trust overall.
This type of trustee can have other advantages, depending on the grantor’s circumstances and the trust’s details. Additionally, some situations may require the expertise of a corporate trustee, usually varying on a case-to-case basis.
Making informed trust decisions
Having difficulty finalizing trust decisions could be understandable, but solidifying these details is necessary. In these instances, consider consulting an attorney with experience in estate planning.
Valuable insight and advice can help determine the best options when planning for a trust, including trustee appointments. Additionally, legal counsel can help consider other factors that may lead to trust issues or disputes long after establishing the arrangement.
