4. As Trustee

As trustee, a corporate trustee has full responsibility for managing your trust assets according to your instructions.

This would be an excellent choice if you are elderly and have no one you can trust to take care of your financial affairs. You may be widowed, have no children or other trusted relatives living nearby (or don’t want to burden them), or you and your spouse may be in declining health.

Even if you are capable of managing your own trust, a corporate trustee can be a wise choice. You may not have the time, desire or investment experience to manage your trust yourself. Or perhaps you just feel that someone with more time and experience could do a better job than you.

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3. When would I use a corporate trustee?

If you set up an irrevocable trust (like a charitable or life insurance trust) or you plan to make gifts in trust — strategies often used to save estate taxes by removing assets now from your taxable estate — you will probably need to name someone other than yourself as trustee for tax reasons. A corporate trustee is a natural choice to make sure your irrevocable trust is administered properly.

If you set up a revocable living trust — to avoid probate when you die and prevent court control of your assets at incapacity — you can be your own trustee. Even so, there are many benefits to having a corporate trustee involved. They can assist you in several ways…

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2. 7 Reasons To Use A Corporate Trustee

1. You’ll gain the advantage of years of experience.
Because they manage trusts on a daily basis, they are familiar with all kinds of trusts, tax and estate planning strategies, and the legal responsibilities of a trustee.

They can manage the assets in your trust now and/or after you die as your trust directs — buying and selling assets, paying bills, filing tax returns, maintaining accurate records, and distributing income and assets. Most have experience with all kinds of assets, including stocks and bonds, real estate, farms, closely held businesses, mineral properties, international investments, and collectibles.

2. You’ll enjoy the potential of even greater investment returns.
Corporate trustees give their full attention to managing trust assets — that’s their job. And because their staff collectively has more experience and resources than an individual, they often achieve better results.

After discussing your financial goals, risk tolerance and long-term objectives with you, they will recommend the best investment strategy for you. Then, depending on how involved you want them to be, they can provide ongoing advice, or even make decisions for you, to make sure your investments stay on track to reach your goals.

3. You’ll protect your wealth because corporate trustees are regulated by both state and federal agencies.
Also, most courts consider them “experts” and expect them to meet higher standards than a nonprofessional.

4. You’ll receive reliable, professional service.
A corporate trustee won’t become ill or die, divorce, go on vacation, move away or become distracted by personal concerns or emotions as an individual might.

5. You’ll value their objectivity.
They will follow your trust instructions objectively and faithfully, something family members are often unable to do.

6. You’ll tap their rich sources of advice and referrals.
They routinely provide advice on investment, tax, retirement and estate planning issues, and can refer you to attorneys and other qualified professionals as needed.

7. You’ll enjoy peace of mind.
Knowing you have selected someone with experience and integrity to manage your financial affairs now and/or when you are no longer able to do so yourself can be very reassuring.

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1. What is a corporate trustee?

With people living longer and health care costs continuing to rise, our savings must grow larger and last longer. Deciding where to put your money in an uncertain market with so many investment options from which to choose can be very confusing, and making a wrong decision can be very costly.

One option you should not overlook is the bedrock of asset management and personal service — the corporate trustee.

A corporate trustee is a bank trust department or trust company. Its employees can help you build, manage and protect your wealth when you put your assets in a trust.

A trust is simply a legal document that lets you reduce unnecessary legal fees, save taxes and keep control over your assets while you are living, if you become physically or mentally incapacitated, and after you die.

When you set up a trust, you need to name someone (a trustee) to manage the assets your trust controls. While you can choose just about any adult, there are very good reasons why you should consider a corporate trustee.

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