In estate planning, the role of a trustee is to hold and manage assets according to the Trust Deed or Will for the benefit of the Beneficiaries. A trustee may be a natural person, an individual, or a body corporate. Serving as a trustee can be a time-intensive process that requires specialized knowledge, expertise, discretion, good judgment, and resources. A Trustee must, by law, act in the best interests of the beneficiaries. Therefore, whoever you choose as a trustee should be a person(s) you can trust. Here are some of the benefits of using a corporate trustee like Greenthos Capital to manage your estate planning affairs.
Skilled administration
A trustee needs to understand their responsibilities in terms of the law and the trust deed. By appointing a corporate trustee to provide your estate planning needs, you get access to a depth of resources and objectivity that an individual such as a family member, colleague, or friend may not provide. Whoever you choose as a trustee should have adequate resources to administer your affairs. Given their experience managing various estates and their access to skilled professionals, you will benefit from having a corporate trustee to manage your will/trust in the aspects of:
- Investment review, advice, and management
- Preparation of annual accounts and tax returns
- Compliance with all aspects of trustee law
- Review of financial statements
- Attendance of meetings
Permanence
The choice of individuals as trustees can create difficulties. For example, if they are away when documentation needs to be signed or if they become incapacitated or die. Corporate trustees have a distinct advantage over individual trustees as they can administer your Trust for as long as it exists. A Trust can potentially be around for decades or in the case of Charitable Trusts, in perpetuity. Most trusts are set up to last generations. If a trustee is unable to continue managing the trust (usually due to incapacity or death), a successor trustee would step in, and that can cause interruptions and new conflicts to surface. Unlike an individual, corporate trustees will not die, become ill or be absent when needed;
Impartiality
One of the tenets of a good succession plan is the separation of management and beneficiaries. Having an independent party handle management of an asset reduces conflict. Having family members or friends fill a trustee role can give room for conflict of interest. A corporate trustee offers impartial and independent advice that keeps the beneficiaries’ interests front and center. As fiduciaries, trustees have to act in the best interests of the beneficiaries of a trust/Will.
Greenthos Capital can help you with your estate planning requirements and advise you on how best to ensure the smooth transfer of your assets to your intended beneficiaries. How can we make such solutions work for you? Contact us today.
*Disclosures: This material does not provide individually tailored advice. It has been prepared without regard to the individual circumstances and objectives of the person(s) who receive it.
