The trustee role can sometimes put families or friends into roles where they may not be comfortable. Often, the trustee and beneficiaries are likely to be family members; as such, there is a potential for conflict between the trustee and beneficiaries, and even among the beneficiaries, where the trustee will need to get involved. Sometimes, a trustee is also a beneficiary, which would pose a conflict of interest. A corporate trustee offers impartial and independent advice that keeps your decisions front and center.*
*Corporate Trustee services are offered through National Advisors Trust Company, the largest federally chartered trust company created by registered investment advisors for the benefit of their clients.
Most trusts are set up to last generations. If a trustee is unable to continue managing the trust (usually due to incapacity or death), a successor trustee would step in, and that can cause interruptions and new conflicts to surface.
A trustee’s duties begin after the grantor, the person who created the trust, dies. If the trustee is a family member or friend, he/she is dealing with grief and the emotions that come with it, while trying to fulfill the duties of a trustee.
Often, a trustee will need to balance the needs of the current beneficiaries with those of future beneficiaries. Let’s say a beneficiary asks for a distribution (wants to fund a new business) that will impact what’s left for future beneficiaries. A corporate trustee can help remove the drama, tension, and emotions that inevitably show up in situations like these.
We often hear from our clients who select our Corporate Trustee Service that they want to ensure family harmony and their children’s welfare after they are gone.
Examples of families that need Corporate Trustee services:
Serving as a trustee can be a time-intensive process that requires specialized knowledge, expertise, discretion, good judgement, and resources. A trustee has many responsibilities. Here are just a few that place a burden on trustees who are not corporate trustee professionals:
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