By: Jeremy Skoglund, Vice President Trust Officer
You’re putting together a Trust or setting up a Testamentary Trust (a Trust that’s created after you pass away) in your Will. You know who the beneficiaries will be, but you’re torn between who should be the designated Trustee. Your sister manages her finances well and seems to understand investments. Your best friend is always bragging about how well his stock picks are doing.
Your friends and family may be a good fit to manage your assets when you are gone, but before you make that decision, read about the three benefits of designating a Trust Department as the Trustee.
The main benefit of using a Trust Department would be the knowledge and experience of individuals who manage assets on a daily basis. They will be able to handle all the tax filings that are necessary along with making sure that bills are paid timely. A Trust Department is required to document everything so you can be confident there will be appropriate records kept. Trust Department personnel know what investments are suitable for a Trust.
Let’s say you pick a great individual Trustee. They properly manage your assets and keep up on all the recordkeeping and tax filings.
The problem is the unknown length of some Trusts. Will your Trust be set up to benefit your young children? The term of the Trust could be many years. Will the individual Trustee be available to serve as Trustee for the entire term of the Trust? If a Bank’s Trust Department serves as the Trustee, although a specific Trust Officer may change from time to time, the Trustee will always be there.
Sometimes it can be hard to be objective, especially when your family or friends are trying to manage your assets for the benefit of your spouse and your kids. You set up your Trust to provide income to your spouse for life with the remainder passing on to your kids, but your spouse will likely want funds invested to maximize income, your kids want funds invested to maximize growth, and your sister wants to be the “fun aunt.”
A bank Trust Department deals with these situations every day and, while these decisions can still be difficult, the Bank is well-equipped to handle them objectively.
Give us a call to learn about more benefits of having us help manage your Trust: