Should You Hire a Professional to Manage Your Trust?

Trusts are a common feature of estate plans. Whether you want to preserve wealth for the future, bypass the probate process or simply ensure your wishes will be upheld, a trust can help. Often, individuals setting up a trust might wish to name a relative or close friend as the trustee. But sometimes there isn’t a viable individual trustee option or families are concerned about maintaining harmony. In addition, the appointed individual must possess the rare combination of skills and experience to ensure complex financial assets are managed prudently. In many cases, the solution may lie in hiring a professional trustee.

What are the benefits of having a professional manage your trust?

Employing a professional to take on the trustee duties can help ensure a more seamless implementation of your estate plan, such as transferring assets to heirs and protecting your legacy. Their knowledge of legalities, financial matters and compliance regulations, skill in judiciously delegating investment management responsibilities and ability to handle administrative duties can bring peace of mind knowing your assets are protected.

How do I determine what is the right path for my situation?

Deciding whether to name a professional trustee or an individual to steward your trust – either presently or as a successor – depends on your specific needs, preferences and the complexity of the trust. Considerations include:

• Complexity of the trust and trust assets. For situations involving operating businesses, multi-faceted assets, intricate legal requirements or significant financial transactions, a professional trustee may be more suitable to handle these complicated issues and protect the beneficiaries.
• Size of the trust. The resources, scalability and risk management capabilities of a professional may be better equipped to handle larger trusts.
• Ongoing care. If you are looking for continuous trust management spanning generations, a professional trustee’s perpetual existence can provide stability.
• Keeping the peace. Sometimes family and friends don’t mix well with money. Appointing an impartial and neutral third-party professional trustee may help avoid conflicts among relatives and beneficiaries.
• You get what you pay for. The fees of professional trustees may be justified by the benefits and services they provide. And the cost of mistakes can be high.

Which trust company should I work with?

It’s vital that you partner with a reputable professional trust company that operates in a collaborative, collegial environment. A wealth advisor can help you search for one that:

• Best fits your needs based on the size of the trust and level of service needed.
• Accommodates any special needs and circumstances that may exist when executing the trust.
• Follows a data-driven investment strategy for trust assets and provides continuity in working with your other professionals.
• Navigates the complexities and seizes the opportunities across various state laws.
• Helps you understand the trust company’s fee structure and other potential costs.
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The decision to hire a professional to manage your trust should be based on your specific needs, preferences and circumstances. Consulting a wealth wealth advisor can help you make an informed decision about the trustee options available that best fit your situation.

For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based on third-party data and may become outdated or otherwise superseded without notice. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio nor do indices represent results of actual trading. Information from sources deemed reliable, but its accuracy cannot be guaranteed. Performance is historical and does not guarantee future results. All investments involve risk, including loss of principal. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this article. R-24-6959