When you create a trust as part of your estate plan, you take control over what ultimately happens with your legacy. If all you have in your estate plan is a standard will, your authority over your legacy ends when your executor distributes property to your family members. However, if you create a trust, the trustee can continue to carry out your wishes for years or even multiple generations.
Most people assume that they have to name a family member or someone they know as the trustee. However, naming one individual isn’t the only option.
People also use corporate trustees
Trying to choose one person from your family or social circle to manage your legacy could hurt feelings and lead to conflict. It’s also possible that you don’t have anyone who is competent, trustworthy and at an appropriate age to manage the trust and its assets. Even if you know someone who would do the job well, they may not live for as long as you want the trust to continue.
Naming a corporate trustee like a financial institution or a wealth management firm can be a good solution because it takes away the personal aspects of the decision, meaning it won’t disrupt your family relationships as much. Further, this can allow permanent, professional management until the trust reaches its planned end.
Alternatively, naming several people as co-trustees can help lessen family conflict and allow the trustees to oversee one another.. Exploring all of your options when creating a trust will help you maximize the benefits you derive from estate planning.