Choosing the right trustee for your estate is one of the most significant decisions you will make as an estate holder. The financial empire you build requires adequate administration in your absence. No matter what type of trust you are creating, it is crucial that your trustee rightfully oversees your assets. Many individuals opt for a close peer, a family member, or a professional trust management company to look after their assets.
Beneficiaries, entities, or individuals that receive the trust assets depend solely on the trustee for financial expertise, legal advice, objectivity, and fairness. They are the rightful owners of the trust in your absence and will rely on your trustee to receive the assets.
Your trustee should be honest and financially responsible, as you will bestow great power on them under your trust document. Whether you go for a personal or professional direction in making this decision, multiple factors go into finalizing your trustee. Here are some crucial points to consider when making this critical decision.
What are the qualities of a good trustee?
As the title entails, a good trustee should be someone trustworthy. It is the first and foremost quality you should look for, as they will look after your entire estate in your absence. If you cannot trust them to hold even one dollar for you, automatically eliminate them from your potential trustee pool. It would be best to have complete faith that your trust will not be the target of prejudice, bias, or improper action. If you decide to go with a family member, then they should be financially responsible, honest, and an impartial judge. However, multiple issues arise with selecting a family member as a trustee. They may not have clear judgment and act in self-interest without maintaining financial responsibility. That is why it is recommended that estate holders must hire professional trust management companies to look after their assets. We recommend the Wealth Enhancement Group as a trust management company to ensure your estate is managed best. The company is known for providing the best trust services in the country, allowing its clients to feel safe and secure. They are experienced professionals who fully understand estate-planning laws and can give accurate advice about the most suitable trust for your situation.
Important factors to observe
There are a bunch of factors you should always clear up before selecting your professional trust service.
Since how long are they operating?
It is integral to check for how long a company operates before signing up with them. An older firm has more experienced employees, a wider variety of packages, and more trust in their work. Go for a trust management company that is well-reputed and long-standing, as it will reduce your chances of encountering any stress. An older firm will also have experienced employees and will not face difficulty navigating any difficult situations if they arise. You and your estate are much safer in the hands of a reliable, older trust management firm than a newer one.
Are there any regulatory bodies looking after them?
Asset management companies are regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Regulatory bodies keep the trust management companies’ finances, investments, and trading in check. Without such bodies, the company is bound to have issues with its record-keeping and data. Hence, the firms must be run by such authorities. They should also adhere to professional codes while abiding by the law to ensure the safety of the client’s interests. If you do not look into this, you are taking a massive risk with your trust fund management and jeopardizing the future of your loved ones.
How credible is their top management?
The professionals running the trust management firm are essential to look into as they run the operations. These people will look after your trust, so do your thorough research and acquaint yourself with them. The top managers should be well-qualified, licensed, and free of negative records. The company should not have any legal liability on them as it harms the clients.
What will be the cost?
Trust management companies usually charge 1% – 1.5% of the value of the assets as the annual fee. However, all companies are open to their rates and charge their clients accordingly. Your trust management company will charge you, so always go for those which are fairly pricing their services. Before deciding this, research the current market rates and different companies’ packages. Whichever falls in your budget and fulfills your needs as a client is the one for you. Fee concessions are often negotiable, so you should also keep that in mind.
Benefits of hiring a trust management company
A professional corporate trustee has administrative experience in trust management. They will ensure safe oversight of your assets and make intelligent investment decisions with rationality. Professionals demonstrate impartial judgment and financial responsibility as they align their objectives with your financial goals. Corporate trustees work independently and do not have any conflict of interest when carrying out business. They have running systems dedicated solely to managing property and investing funds. Such firms align with the capital reserve requirements for high liquidity if they encounter a breach of trust.
Can I have more than one trustee?
Yes, you can have more than one trustee. Multiple options exist, such as hiring a corporation and an individual or for effective trust management. Hiring a corporate trustee and naming an individual as a co-trustee is possible. The option is two-dimensional as it allows you to have the professional input of asset management and also a personal outlook of a close friend or family. Co-trustees work hand in hand to ensure maximum asset maintenance and proper distribution. Not only will your assets be adequately managed, but they will also have a touch of personal care from your loved ones.
Opting for a corporate fiduciary reduces conflicts amongst friends and family members as they offer professional asset and financial management services. All corporate trustees are held to extremely high standards and do not operate without proper licensing/regulation. Trust management companies receive state and national charters, allowing them to provide professional services. They follow strict policies to ensure unbiased services for all clients due to a lack of personal interest. Also, corporate trustees validate their decisions by offering monthly statements and written explanations. A corporation cannot expire or die, whereas a person can, creating more problems. The transparency, honesty, and objectivity the corporate fiduciary offers are what you need for your asset management since the empire you build deserves professional care.