Corporate trustees may be a wise decision.
Estate planning is important.
If your estate plan involves a trust, it may require more experienced management.
According to a recent The Dallas Business Journal article titled “Fiduciary investment management and corporate trustees,” a professional trustee may be just the e-ticket (Baby Boomers will get this reference).
One major benefit is managing investments.
Corporate trustees are held to a "fiduciary standard of care" in managing the investment portfolio of a trust.
What does this mean?
They must place the interests of their clients above their own.
In fact, this is a legal requirement.
What should you consider when selecting a corporate trustee?
The corporate trustee should take time to understand your investment goals.
This includes your long-term and short-term goals.
You will need to be honest about your risk tolerance and foreseeable liquidity needs.
By providing this information, the corporate trustee can build an appropriate portfolio of investments for your goals.
Your corporate trustee should be diligent to understand current and future trends.
Serving as your trustee should be more than just a job, it should be a relationship.
This is especially important when it comes to keeping the trust up-to-date and helpful for the beneficiaries.
The choice of a trustee should not be made lightly.
Do your research.
Select a corporate trustee with experience and with whom you can foresee a strong relationship.
Reference: Dallas Business Journal (September 24, 2018) “Fiduciary investment management and corporate trustees”