February 2021 Issue: Corporate or Individual Trustee? Help your Client make the Right Choice-Corporate or Individual Trustee? Help your Client make the Right Choice by Patricia M. Angus

Corporate or Individual Trustee? Help your Client make the Right Choice by Patricia M. Angus

Pdf Summary

Selecting a trustee for a family trust is a crucial decision, and financial advisors can play a role in guiding their clients through this process. It is important to not rush into making a decision and to instead educate the client about the trustee role and help them develop criteria for their ideal trustee. A trustee has three essential responsibilities: administration, investment, and distribution. Clients often lack knowledge about trusteeship, so it is beneficial for advisors to objectively teach their clients about these responsibilities. This helps clients understand the complexity of the role and prevents them from making hasty choices. Advisors should help clients develop criteria for their trustee, such as investment expertise, administrative capacity, distribution capabilities, communication skills, trustworthiness, and respect. It may not be possible to find one trustee who meets all criteria, so a combination of trustees may be considered. Advisors should remind clients that trusts are not static products and that flexibility is important. Both corporate and individual trustees have their pros and cons, and the best solution is one that considers the needs of the trust beneficiary. Advisors can guide their clients through the trustee selection process, allowing them to make an informed and enduring choice. By doing so, advisors can provide valuable assistance in estate planning.

Keywords

trustee selection

family trust

financial advisors

trustee role

trustee responsibilities

educating clients

criteria for trustee

investment expertise

administrative capacity

distribution capabilities