The last couple of days I have discussed the importance of making the correct selection of your trustee. A trustee serves in a legal capacity as your fiduciary. There are laws specific to the role and responsibility of fiduciaries and laws applicable to trust management. Today, we will address the Pros and Cons of selecting a bank or financial institution as your trustee.
PROS:
(1) A financial institution has longivity. Unlike individuals, you do not have the issue of incapacity or death.
(2) A lot of time does go into training and education in the specific area of trust and financial management.
(3) Generally, you have more focus attention to one area. There are departments for each area of expertise with individuals trained in that area of focus.
(4) Financial institutions have the resources to deal with complex matters and serve to be the deep pocket if anything should go wrong with trust management.
CONS:
(1) Financial institutions are subject to merger and closure as we have seen over the last 18 months.
(2) The fees charged by financial institutions are of significant concern to many.
(3) You have to have resources at a certain level in the trust for a financial institution to become your trustee.
(4) Beneficiaries can find working with a financial institution to be a little impersonal with specific individuals handling the trust subject to change at any time.
So, for choosing a trustee make sure you do your homework thoroughly. Seek professional guidance in the selection process. Leave your comments here or contact us at http://www.ythlaw.com/
PROS:
(1) A financial institution has longivity. Unlike individuals, you do not have the issue of incapacity or death.
(2) A lot of time does go into training and education in the specific area of trust and financial management.
(3) Generally, you have more focus attention to one area. There are departments for each area of expertise with individuals trained in that area of focus.
(4) Financial institutions have the resources to deal with complex matters and serve to be the deep pocket if anything should go wrong with trust management.
CONS:
(1) Financial institutions are subject to merger and closure as we have seen over the last 18 months.
(2) The fees charged by financial institutions are of significant concern to many.
(3) You have to have resources at a certain level in the trust for a financial institution to become your trustee.
(4) Beneficiaries can find working with a financial institution to be a little impersonal with specific individuals handling the trust subject to change at any time.
So, for choosing a trustee make sure you do your homework thoroughly. Seek professional guidance in the selection process. Leave your comments here or contact us at http://www.ythlaw.com/
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