Benefits of Hiring a Corporate Trustee for Estate Planning

by Theresa de Leon, EVP, National Director of Sales at Arden Trust Company

Hiring a corporate trustee to manage an estate, rather than appointing a family member, may be more costly but it can alleviate stress and reduce family tensions, according to experts. Financial advisors play a crucial role in estate planning, managing investments and tax exposure for beneficiaries. With an estimated $72 trillion set to transfer by 2045, the stakes for advisors are high.

Theresa de Leon of Arden Trust highlights the advantages of professional trustees. She argues that professionals can handle the lengthy and stressful process of distributing an estate's assets more effectively than a beneficiary might. This approach not only ensures high fiduciary standards but also helps avoid legal liabilities and familial conflicts.

Professional trustees bring extensive experience and objectivity, managing tasks like accounting, distributions, tax documents, and investment monitoring. They also leverage technology to streamline the process, providing a better experience for families. This is particularly beneficial in complex family dynamics where an external trustee can mitigate tensions by adhering strictly to the terms of the trust.

In many cases, firms like Arden Trust step in when family members struggle with the trustee role, reducing conflicts and ensuring a smoother administration process.

Read the full article by Tobias Salinger on Financial Planning here.