Corporate Trustee

One of the most important decisions made when establishing a trust is the selection of a trustee. Choosing the wrong trustee can lead to legal issues and be disruptive to estate-planning goals, so it’s essential to consider options carefully.

A trust is a legal arrangement that transfers property to a trustee, who manages it for the beneficiaries named in the trust. The law sets high standards that every trustee must meet. With a living trust, the grantor typically functions as a trustee. But who will take on this responsibility should the grantor or trustee become disabled or die?

Some grantors choose a family member or trusted friend. Another option to consider is a corporate fiduciary as a trustee. Choosing a Corporate Trustee can help ensure that current and future generations benefit from the expertise, prudence and continuity that a well-established fiduciary can provide.

Advantages of a Corporate Trustee

Objectivity: Trustees must be able to stand up to the pressures exerted by beneficiaries, without concern about how this might affect family relationships. A Corporate Trustee is only concerned with managing the trust to its exact specifications.

Continuity: Individual trustees can resign, become disabled or pass away. A Corporate Trustee remains in place as long as the trust employs it.

Accounting and reporting expertise: Accounting and reporting for a trust is complex. A Corporate Trustee has the operating systems and expertise to properly manage these functions.

Willingness to Serve: It’s important not to assume an individual will take on the responsibility of serving as trustee-always ask first. A Corporate Trustee is ready and willing to serve (after all, it’s our job).

IST can serve as Corporate Trustee in the following capacities:

IST assumes all administration and fiduciary responsibilities of managing the trust according to the terms defined by the trust agreement.
IST shares administrative and fiduciary responsibilities with another named trustee, such as a family member or attorney.
We are named to replace or succeed an existing trustee.
The designated trustee stays in control, while IST handles the administrative duties as delegated.