A corporate fiduciary can facilitate the investments of a Trust, pay the bills of a Beneficiary on an on-going basis, provide accurate recordkeeping, file applicable court documents and have a knowledge of other community based organizations that can drastically enhance the quality of life of their beneficiaries.
Years of experience.
In almost every case, a corporate fiduciary will not only have multiple years of experience in Trust administration, but often times also have a variety of different Trust officers of varying years of experience and expertise in all different types of Trusts.
In addition to the years of experience in Trust administration, a corporate fiduciary will have the savvy and know-how to deal with difficult family and Beneficiary issues.
The typical corporate fiduciary will take a long term investment approach providing protection to market downside as well as providing a growth component for remaindermen and inflation concerns. As corporate fiduciaries are not ‘wheeler-dealers’, you can be assured that they will take into account all aspects of the Beneficiary’s life plan, tailor-fitting investments for income and growth as the Beneficiary’s life and needs change.
Lastly, our research shows that the typical investment manager in the Denver metro area charges 1-1.5% to professionally manage portfolios. With a typical fee of 1-1.2%, you actually save money by hiring the professional money managers of corporate fiduciaries, while gaining access to their wealth planning capabilities and Trust administration expertise.
Most corporate fiduciaries are governed by State or Federal Regulators (Office of the Comptroller of the Currency, or ‘OCC’). Personal fiduciaries are not held to as high as standard as these government oversight agencies, meaning you have the peace of mind that not only is your Trust reviewed by a professional Trustee, it is also audited and held to the high standards of the OCC, thus negating most of the risk of fraud or mismanagement on the part of the Trustee.
in too many cases, family members are estranged from one another once money is involved. Who would ever want to come hat-in-hand to their brother or sister asking for money from their Trust?
A corporate fiduciary has no such family ties and is only interested in carrying out the wishes of the settlor or grantor of the Trust while protecting the Trust from creditors or preserving the benefits of the beneficiaries.
corporate fiduciaries have ‘big shoulders’ and have no issue with saying ‘no’ to a Beneficiary when it’s in the Beneficiary’s best interest, which is much more difficult when you’re related to the Beneficiary.
A professional Trustee will look at all aspects of the life of the settlor or Beneficiary in order to determine the most prudent course of action. Market conditions, tax law, retirement and estate planning change every day and your professional fiduciary will keep you and your beneficiaries abreast of such changes and how it affects you or your Trust. Being that this is all that professional Trustees do every day, they are able to zero in and focus on relevant issues while not letting them slip between the cracks.
In addition to State and Federal regulators, professional fiduciaries are required to carry hefty errors and omissions insurance; personal Trustees are not. In the event that the professional Trustee should make an error, your Trust would be reimbursed in full in most cases.