Legal Blog

The Weekly Scenario: Advantages of Corporate Trustee

Question: What are the advantages of using a corporate trustee?

Answer: A corporate trustee’s job is to manage trusts professionally. The corporate trustee has experience in the area of fiduciary management and can act objectively to follow the instructions as written in the trust. Corporate trustees have internal investment expertise and have systems in place to keep track of investments, disbursements, fees, and the like. If something goes wrong and a mistake is made, corporate trustees have insurance (errors and omissions) so that trust beneficiaries have a means to recover damages Comment: The reason many potential trusts do no utilize a corporate trustee is the cost (fees for their service). There is also the notion that a family member acting as trustee may have a better understanding of the family and thus may make better decisions when it comes to making discretionary disbursements from the trust. This may or may not be the case, so it is important to understand the family dynamics and the objectives for establishing the trust. If you have any questions or would like more information please contact Steve Shane at: sshane@offitkurman.com | 301.575.0313.

ABOUT STEVE SHANE

Steve Shane Head Shot for webSteve Shane provides strategic counseling to clients in need of estate administration, charitable giving and business continuity planning while minimizing estate, gift, and generation-skipping transfer tax exposure. He offers legal guidance to clients on asset protection and the proper disposition of assets in accordance with the client’s objectives, while employing tax planning techniques such as the use of irrevocable trusts, life insurance planning, lifetime gifts and charitable trust. He is also experienced with drafting documents for business planning, the incorporation and application for exemption for Private Foundations and the administration of decedents’ estates. You can also connect with Offit Kurman via FacebookTwitterGoogle+YouTube, and LinkedIn. WASHINGTON | BALTIMORE | FREDERICK | PHILADELPHIA | WILMINGTON | VIRGINIA