Appointing a trustee over your estate can be a stressful decision. Sometimes, people choose to select a corporate trustee over a friend or family.
There are many reasons to appoint a third party to act as trustee when estate planning. A trustee is responsible for making investing decisions as well as paying bills, managing assets, keeping record of what goes in and out, and making payouts to beneficiaries.
What’s the difference between a corporate trustee and a regular trustee?
Family members or trusted friends are normally appointed trustee over estates. There are several different reasons for not being able to appoint friends or family as trustees over your will.
People will choose corporate trustees when their children are still minors or otherwise unable to handle the big decisions that come with being a trustee. Friends can act as trustees, but at the end of the day, you might not trust a friend to make the same decisions as a professional trustee would.
What are some of the benefits of a corporate trustee?
One of the biggest benefits of a corporate trustee is their advanced knowledge of estates, investment opportunities and trusts. Corporate trustees are paid to make the best financial decisions with your estate while managing it according to your wishes and the beneficiaries’ best interests.
What are the downsides to a corporate trustee?
One of the biggest reasons people avoid hiring corporate trustees is the price. Most of the time, corporate trustees are expensive, and there isn’t a lot of flexibility for your beneficiaries down the road.
Ultimately, whether you hire a corporate trustee is going to be entirely dependent upon your trust and the best interest of your family. Be sure to research all of your options before appointing a trustee.