3 Reasons to Use a Professional Trustee

Whenever a client decides to create a trust we talk about who they’d like to name as the successor trustee (the person that becomes the trustee after they die).

Often people aren’t sure who to name.

They consider naming a family member but aren’t sure if they have anyone that is up to the job.

They consider naming a professional trustee but aren’t sure if the fees are too high or if they have “enough assets” to warrant it.

Today I wanted to talk about 3 reasons you might want to consider using a professional trustee with your trust.

As always, however, I want to couch this information with my philosophy – there is no right answer here. What I’m telling you I’m telling you so you can make an informed decision for what is right for YOUR family.

Whew, glad that’s out of the way. Here we go.

1. They’re a “pro.”

Professional trustees are just that – they are pros at what they do. This means they are experienced, they know exactly what they are supposed to be doing, and (if they are good) they’ve got systems in place to make sure everything that is supposed to get done is actually getting done.

They know when to file taxes, when to make distributions, and how to translate the legalese that often fills up trust documents.

2. No emotional ties.

Professional trustees haven’t lived with all of the family members for years. There are no preconceived notions about anyone.

No one has any established “role” within the family for the professional trustee.

This often means things are handled fairly and without emotion. In fact, I often refer to myself to my clients as the cold hearted guy.

I’m here to help and keep my own personal emotions out of things. That usually benefits everyone.

3. Pros have extra skin in the game.

When a professional is a trustee they don’t just have their role as trustee at stake if they mess up.

They have the reputation of their company, they have their law license (if they are a lawyer), and they have their own personal reputation at stake.

For that reason, often professional trustees are more apt to take what they do seriously, ensuring that deadlines are met and procedures are followed as outlined in the trust.

There you go. 3 reasons to use a professional trustee.

If you have any more questions or think you might want some help, click the link below to schedule a phone or in person strategy session. Looking forward to it!

https://cmslawfirm.com/scheduleasession