Planning for the Future
Planning for the Future

Corporate Trustee vs. Individual Trustee

When selecting a trustee for your estate, you need to consider your options.

Executors and trustees are referred to as fiduciaries because of the higher standard of care which is required of them in managing the assets of another person. Discuss the facts of your own estate relative to the list of advantages shown below.

Advantages of a Corporate Fiduciary

  • They don’t die or become disabled – permanence.
  • They are financially accountable for their mistakes.
  • They are impartial as to the children. This may prevent the children from becoming bitter towards an individual trustee who happens to be a friend or relative and who doesn’t make distributions every time the children ask for something.
  • They have investment expertise, tax and accounting abilities, and computer capabilities. Studies show that they save many dollars in the average estate.
  • They refuse loans to hard-up friends of the trustee.
  • They keep current with the constant changes in the law.

Advantages of an Individual Fiduciary

  • A relative or friend may not charge a fee.
  • A relative or friend may have a more personal interest.
  • An individual may have special expertise (i.e., running the family business).
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