“Choosing a Corporate Trustee: Factors to Consider for Your Estate Plan”

Many people put a lot of thought into creating trusts for their loved ones, considering tax efficiency, distribution provisions, and management of assets. One aspect that is often overlooked is choosing who will be responsible for carrying out the decisions outlined in the trust. While family members or friends may seem like obvious choices, corporate trustees also have their benefits. Corporate trustees are perpetual, have professional experience, and can administer trusts impartially. However, there are challenges such as expensive fees, inflexibility, and the potential strain on familial relationships. It is crucial to carefully consider the implications of naming a corporate trustee in estate planning and administration.

When appointing a corporate trustee, it is important to consider the specific attributes of different trustees, such as experience, capabilities, and resources. Questions to consider include whether the wealth management advisory team works for the corporate trustee, the ease of changing trustees, and the fees associated with serving. It is also important to ensure that the trust document clearly outlines intentions and instructions for unique circumstances to avoid potential conflicts with the corporate trustee.

Looking towards the future, it is important to consider how the relationship with the corporate trustee may evolve over time and the potential need to change trustees. Tightening regulations and changes within the corporate trustee organization may impact decision-making and could lead to the need to replace the trustee. Endowing individuals with the power to remove and replace a corporate trustee can provide flexibility in case of changing circumstances or rigidity in trust distributions.

While corporate trustees can be a suitable choice for complex family situations or assets, it is essential to carefully consider the implications and potential changes that may arise in the future. Understanding the structure, choosing the right trustee, and being prepared to revisit the decision if needed can help ensure the smooth administration of the trust for loved ones.