Why name a corporate trustee instead of an individual?

An instinctive first choice for the role of trustee is often a family member or close personal friend. While there may appear to be strong rationale for choosing a relative to be a trustee, hiring an independent corporate trustee may be the wiser decision.

A corporate trustee brings objectivity, experience and expertise at a time that is often wrought with emotion. That is why trust and estate professionals frequently recommend hiring corporate trustees, rather than naming family members.

• Avoiding fees is frequently the primary reason in naming a family member or friend as trustee. Paradoxically, individual trustees must often hire other professionals to assist them in carrying out their obligations as trustee which may eliminate any expected cost savings. Some advantages of using a corporate trustee over individual trustees include:
• Accountability – Recordkeeping systems exist to ensure timely, accurate accounting of principal and income.
• Confidentiality – Privacy is maintained and matters are treated with the utmost confidence.
• Impartiality – Decisions are made objectively in an unbiased atmosphere.
• Experience – Knowledgeable, experienced professionals well-versed in complex trust management.
• Permanence – Perpetual existence assures a capable, professional organization is ready to complete the trust tasks required for decades going forward.
• Responsibility – Required by law to faithfully perform all its duties and follow the trust document to the letter.