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).