dvantages of using corporate trustees are that they do charge fees. There is significant liability and responsibility in serving as trustee so they must be compensated. Most corporate trustees also have minimum annual fees which may be prohibitive. Another potential disadvantage with a corporate trustee is the trustee not knowing the beneficiary as well.

Since the beneficiary is not family, you do not have that intimate knowledge about their needs. In addition, many corporate trustees have significant turnover so you may be working with many trust administrators over the years. The professional advisor has the same advantages as the corporate trustee and many of the same disadvantages. One major

Trusts can be used to accomplish any number of estate planning goals. But the success of a trust strategy often depends on how well the trust is managed — and that depends on the abilities of the person (or institution) named as trustee.

Trustees must wear many hats. They are responsible for investing the assets placed in the trust, interpreting the terms of the trust, making distributions to the beneficiaries, keeping detailed records, potentially filing reports with the court, and filing tax returns, among other duties.

If you are creating a trust, you’ll want to choose your trustee carefully. Legally speaking, almost any adult can qualify to serve. You could select a family member, a friend, a corporate trustee, or a professional advisor such as an attorney or accountant. Each has pros and cons to consider.

Stay in the Family? A family member will already know your beneficiaries and will be motivated on a personal level to make your trust a success. A family member may not charge trustee fees, either. But you need to consider more than a caring personality when naming a trustee. Financial skills and the ability to make unbiased decisions are also essential. Individual trustees often find they need to hire professionals to help, which can eliminate any cost savings.

Your trust may last for a long time. If you choose a relative as trustee, you should name one or more successors in case the first trustee dies, does not want to serve, or is unable to do the job for some other reason. (If you haven’t named a successor trustee and one is needed, a court will step in and choose one.)

Time and diplomacy are important considerations, too. You want a trustee who will have enough time to devote to administering the trust. And, since conflicts could arise among beneficiaries, good people skills and sound judgment may be real assets as well. Rely on Friendship?

If you choose a friend as your trustee, personal concern and knowledge of your family are again important pluses. As a matter of fact, a friend may be more capable of making evenhanded decisions and resolving disputes among beneficiaries than a family member. But remember the importance of financial skills and stability, too.

Choose a Professional Advisor or Institutional Trustee? You can name a bank or trust company or a professional advisor as your trustee. The advantages of using a corporate trustee are that they have the knowledge and experience to administer trusts. They operate in an unbiased professional manner in administering the trust. Their goal is to carry out the terms that you set forth while investing the funds to maximize return based on the beneficiaries needs. Since they are a corporation, they also have longevity; you do not need to worry about the beneficiaries out living the trustee. The disadvantages of using corporate trustees are that they do charge fees. There is significant liability and responsibility in serving as trustee so they must be compensated. Most corporate trustees also have minimum annual fees which may be prohibitive. Another potential disadvantage with a corporate trustee is the trustee not knowing the beneficiary as well.

Since the beneficiary is not family, you do not have that intimate knowledge about their needs. In addition, many corporate trustees have significant turnover so you may be working with many trust administrators over the years. The professional advisor has the same advantages as the corporate trustee and many of the same disadvantages. One major

a corporate trustee, or a professional advisor such as an attorney or accountant. Each has pros and cons to consider.

Stay in the Family? A family member will already know your beneficiaries and will be motivated on a personal level to make your trust a success. A family member may not charge trustee fees, either. But you need to consider more than a caring personality when naming a trustee. Financial skills and the ability to make unbiased decisions are also essential. Individual trustees often find they need to hire professionals to help, which can eliminate any cost savings.

Your trust may last for a long time. If you choose a relative as trustee, you should name one or more successors in case the first trustee dies, does not want to serve, or is unable to do the job for some other reason. (If you haven’t named a successor trustee and one is needed, a court will step in and choose one.)

Time and diplomacy are important considerations, too. You want a trustee who will have enough time to devote to administering the trust. And, since conflicts could arise among beneficiaries, good people skills and sound judgment may be real assets as well. Rely on Friendship?

If you choose a friend as your trustee, personal concern and knowledge of your family are again important pluses. As a matter of fact, a friend may be more capable of making evenhanded decisions and resolving disputes among beneficiaries than a family member. But remember the importance of financial skills and stability, too.

Choose a Professional Advisor or Institutional Trustee? You can name a bank or trust company or a professional advisor as your trustee. The advantages of using a corporate trustee are that they have the knowledge and experience to administer trusts. They operate in an unbiased professional manner in administering the trust. Their goal is to carry out the terms that you set forth while investing the funds to maximize return based on the beneficiaries needs. Since they are a corporation, they also have longevity; you do not need to worry about the beneficiaries out living the trustee. The disadvantages of using corporate trustees are that they do charge fees. There is significant liability and responsibility in serving as trustee so they must be compensated. Most corporate trustees also have minimum annual fees which may be prohibitive. Another potential disadvantage with a corporate trustee is the trustee not knowing the beneficiary as well.

Since the beneficiary is not family, you do not have that intimate knowledge about their needs. In addition, many corporate trustees have significant turnover so you may be working with many trust administrators over the years. The professional advisor has the same advantages as the corporate trustee and many of the same disadvantages. One major

case the first trustee dies, does not want to serve, or is unable to do the job for some other reason. (If you haven’t named a successor trustee and one is needed, a court will step in and choose one.)

Time and diplomacy are important considerations, too. You want a trustee who will have enough time to devote to administering the trust. And, since conflicts could arise among beneficiaries, good people skills and sound judgment may be real assets as well. Rely on Friendship?

If you choose a friend as your trustee, personal concern and knowledge of your family are again important pluses. As a matter of fact, a friend may be more capable of making evenhanded decisions and resolving disputes among beneficiaries than a family member. But remember the importance of financial skills and stability, too.

Choose a Professional Advisor or Institutional Trustee? You can name a bank or trust company or a professional advisor as your trustee. The advantages of using a corporate trustee are that they have the knowledge and experience to administer trusts. They operate in an unbiased professional manner in administering the trust. Their goal is to carry out the terms that you set forth while investing the funds to maximize return based on the beneficiaries needs. Since they are a corporation, they also have longevity; you do not need to worry about the beneficiaries out living the trustee. The disadvantages of using corporate trustees are that they do charge fees. There is significant liability and responsibility in serving as trustee so they must be compensated. Most corporate trustees also have minimum annual fees which may be prohibitive. Another potential disadvantage with a corporate trustee is the trustee not knowing the beneficiary as well.

Since the beneficiary is not family, you do not have that intimate knowledge about their needs. In addition, many corporate trustees have significant turnover so you may be working with many trust administrators over the years. The professional advisor has the same advantages as the corporate trustee and many of the same disadvantages. One major

beneficiaries than a family member. But remember the importance of financial skills and stability, too.

Choose a Professional Advisor or Institutional Trustee? You can name a bank or trust company or a professional advisor as your trustee. The advantages of using a corporate trustee are that they have the knowledge and experience to administer trusts. They operate in an unbiased professional manner in administering the trust. Their goal is to carry out the terms that you set forth while investing the funds to maximize return based on the beneficiaries needs. Since they are a corporation, they also have longevity; you do not need to worry about the beneficiaries out living the trustee. The disadvantages of using corporate trustees are that they do charge fees. There is significant liability and responsibility in serving as trustee so they must be compensated. Most corporate trustees also have minimum annual fees which may be prohibitive. Another potential disadvantage with a corporate trustee is the trustee not knowing the beneficiary as well.

Since the beneficiary is not family, you do not have that intimate knowledge about their needs. In addition, many corporate trustees have significant turnover so you may be working with many trust administrators over the years. The professional advisor has the same advantages as the corporate trustee and many of the same disadvantages. One major

dvantages of using corporate trustees are that they do charge fees. There is significant liability and responsibility in serving as trustee so they must be compensated. Most corporate trustees also have minimum annual fees which may be prohibitive. Another potential disadvantage with a corporate trustee is the trustee not knowing the beneficiary as well.

Since the beneficiary is not family, you do not have that intimate knowledge about their needs. In addition, many corporate trustees have significant turnover so you may be working with many trust administrators over the years. The professional advisor has the same advantages as the corporate trustee and many of the same disadvantages. One major disadvantage is that you can not name a law firm or an accounting firm as the trustee in many states so you would need to name an individual attorney or accountant as the trustee and they may leave the firm requiring you to amend your document resulting in additional hassle and expense. Or a Combination?

You can give your family the advantages of personal insight and professional skills by naming co-trustees. The professional advisor or institution you name could handle the investments, taxes, and reporting duties. And your relative or friend could interact with your beneficiaries and respond to their individual needs. If you choose this route, be sure to specify how the co-trustees are to make decisions and resolve disputes when you set up your trust. Also make sure and discuss this option with the corporate trustee as many corporate trustees do not like serving with an individual co-trustee. Either way, you should interview and discuss your trust with the potential trustee before naming them in your document to make sure they are willing to serve and that you are comfortable with them.

What If Your Family Isn’t Happy? Trustees usually serve for the trust’s entire term. But sometimes, beneficiaries are unhappy with a trustee’s performance. To allow for this possibility, you should include a provision in your trust for removing one trustee and substituting another. The procedure should be carefully structured, however, to prevent tax problems and to make sure your beneficiaries aren’t able to change the intent of your trust. One simple way to do this is to require that an independent third party agree with the change of trustee.

If you’re planning to set up a trust, naming the right trustee is very important. Your financial planner can help — but ultimately, the choice is yours.

Valid Through 6/07