Yes, you absolutely can name a corporate trustee in a testamentary trust, and in many situations, it’s a very prudent decision; testamentary trusts are created within a will and only come into effect after death, offering a different set of considerations than living trusts established during one’s lifetime.
What are the benefits of using a corporate trustee?
Many people assume a family member or friend will seamlessly step into the role of trustee, but this isn’t always the case. Corporate trustees – typically trust companies or bank trust departments – bring a level of impartiality, expertise, and continuity that individuals often can’t match. According to a recent study by the American Bankers Association, approximately $28 trillion in assets are managed by trust departments in the United States. They provide professional asset management, diligent record-keeping, and a clear understanding of fiduciary duties. This can be especially important in complex estates or when there’s potential for family disputes. For example, a client once expressed worry about naming her son as trustee, fearing it would strain their relationship and potentially lead to mismanagement of funds intended for her grandchildren. A corporate trustee offered a neutral solution, ensuring the funds were managed according to her wishes without creating family friction.
How does a testamentary trust differ from a living trust?
A living trust, established while you’re still alive, allows for immediate asset management and avoids probate, but a testamentary trust comes into being *after* your death through the provisions of your will. This means the trustee isn’t appointed until a court validates the will, a process which can take months. Because of this delayed activation, careful selection of a trustee is crucial. It’s estimated that over 50% of Americans do not have a will, let alone a well-defined testamentary trust. Corporate trustees offer a sense of security because they’re already established entities with robust systems in place, unlike an individual who may be grieving and overwhelmed with responsibilities after a loved one’s passing. They also provide a layer of accountability that a personal trustee might not—their actions are subject to internal audits and regulatory oversight.
What happens if a personal trustee can’t fulfill their duties?
I recall a situation with the Miller family, where a daughter was named trustee in her mother’s will. A few months after her mother’s passing, the daughter received a career-altering job opportunity that required her to relocate across the country. Suddenly, she was unable to effectively manage the trust assets or oversee distributions to her siblings. This created a significant amount of stress and required the family to petition the court to appoint a successor trustee, incurring legal fees and delaying the process. Choosing a corporate trustee from the outset avoids these potential pitfalls. They have the resources and expertise to handle complex situations and ensure the trust is administered smoothly, even in the face of unforeseen circumstances. “Proper planning prevents poor performance”, a phrase I’ve repeated countless times to clients, rings especially true when it comes to estate planning.
Can a corporate trustee work with a personal trustee?
Absolutely. It’s quite common to co-trustee appointments – where a corporate trustee shares duties with an individual. This setup can combine the expertise of a professional with the personal understanding of a family member. The corporate trustee might handle investments and tax filings, while the individual trustee focuses on distributions based on the beneficiaries’ needs and the grantor’s wishes. This collaborative approach offers a balance of professionalism and personalized attention. For instance, I worked with the Thompson family, where a father wanted his son to be involved in managing the trust created for his grandchildren but also wanted the security of a professional handling the financial aspects. By appointing a corporate trustee as co-trustee, we ensured the trust was managed effectively while still allowing the son to play an active role in the process. Approximately 30% of trusts now utilize a co-trustee structure, reflecting a growing trend towards collaborative estate management.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- estate planning
- pet trust
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Map To Steve Bliss Law in Temecula:
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
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Feel free to ask Attorney Steve Bliss about: “Do I need to plan differently if I’m part of a blended family?” Or “How long does probate usually take?” or “What types of property can go into a living trust? and even: “Will my wages be garnished during bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.