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.