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Trustee Services
We provide a wide range of
trust services for individuals and families, including a
flexible and creative approach to unusual and complex trusts and
estates that institutions may be unable or unwilling to
consider. These issues include co-trustee services, real
estate and illiquid assets, family-owned or closely held
business interests, sophisticated tax planning strategies,
irrevocable trusts, and complex estate administration.
In most cases we serve as
trustee or executor either by written direction in the trust or will, or by appointment from the court. In virtually all cases
clients and their beneficiaries are much better served by doing
careful planning in advance, rather than leaving behind a
haphazard state of affairs that will be expensive and time
consuming to organize and administer.
Selecting a Trustee
One of the primary concerns in
setting up an estate plan is selecting the appropriate successor
trustee. Most individuals and married couples serve as their own
trustee during their lifetime. Upon their death or incapacity a
successor trustee is needed to take their place in managing the
assets and administering the provisions of the trust.
Some couples elect to involve
the successor trustee upon the first spouse’s death, so that the
surviving spouse does not have the burden of administering the
trust on their own. Others choose to defer activating the
successor trustee until the death or incapacity of the surviving
spouse. In either case, the selection of a successor trustee
carries enormous consequences in the ultimate success or failure
of the estate plan to achieve its intended objectives.
Many people feel an obligation
to select a family member or advisor for this important
assignment. They may feel these people will be offended if they
are not chosen, and mistakenly view the successor trustee’s role
as largely symbolic, a token gesture of respect.
In reality however, successor
trustees must deal with highly sophisticated and complex matters
of probate law, trust administration, investment management, in
addition to income taxes, gift and estate taxes, and taxes
related to retirement plan and IRA accounts. In truth most
individuals lack the time, talent, interest, and expertise to
properly carry out all the responsibilities of a successor
trustee.
The Role of a Corporate Trustee
Many estate plans are designed
to distribute the assets of the estate to the beneficiaries
(children, other relatives, and charitable organizations) over
an extended period of time in order to provide the greatest
lasting value to the recipients. Such plans require a successor
trustee to administer the affairs of the trust, prudently invest
and manage the various assets, and make distributions to the
beneficiaries at the appropriate times.
Unfortunately, very few family
members or friends are truly qualified and capable of carrying
out these duties. Most are busy balancing the responsibilities
of their own professional careers and the needs of their own
immediate family. Others may have sufficient time available but
lack the interest to dedicate themselves to the cause of the
trust for an ongoing period of time.
Even those having sufficient
time and interest very rarely have the expertise in managing
investments, understanding the tax and legal consequences of
trust administration, and dealing with internal family dynamics
and personality conflicts. In short, it is rare to find an
individual with the unique combination of skills necessary to
properly manage the affairs of the family trust. As a result
many turn to bank trust departments for reliable, professional,
and expert fiduciary services.
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