Six Critical Points To Consider When Choosing a Professional Trustee
Posted: Sunday, April 05, 2009
by Joseph Hollak
http://hollak.info
When you entrust your assets to a professional trustee, the institution you select assumes responsibility for carrying out the personal wishes you have documented. These include the administration of your trust, and, in many cases, investment management of your assets. As these are important obligations, placing your financial assets in the care of a professional trustee is a choice that must be made carefully.
1. With whom do you have a relationship on your trust account?
A personal representative with whom you have a long-standing relationship
should be a strong consideration when selecting a trustee. Access
to an experienced trust officer, assigned specifically to your personal
trust, is key to a successful trust relationship. With a competent, knowledgeable
trustee working for your trust, you can be certain that your instructions
will be carefully and fully followed.
2. How well do you know your trust officer? Has there been
continuity in the trust officer assigned to your trust?
An uninterrupted relationship with your trust representative is vital.
An inexperienced trustee, or one unfamiliar with your account, could seriously
jeopardize the protection you have built into your trust and, possibly,
the future well being of your family. Continuity of service can provide
you with the comfort level you should have in your relationship with your
trust representative.
3. Is your trustee responsive to your needs and do they provide
a high level of service?
Your personal trust, like any aspect of your financial plan, should
be reviewed on a regular basis. Your trust representative must take the
time to understand the needs and goals of individuals (both current and
future) mentioned in the trust, while being responsive to the objectives
expressed in the trust. It also means providing direction and assistance
to develop investment strategies that work best for your trust as part
of your overall financial plan.
4. What level of investment management do you receive on your trust?
The preservation and continued growth of trust assets is an important
element of your trust. Delivering competitive performance results require
the service of dedicated portfolio managers who are committed to delivering
consistent investment results.
Your professional trustee should have a relationship with several experienced
investment managers who will focus their resources on managing the assets
in your trust. The level of experience and commitment will be reflected
in the performance delivered.
5. What investment alternatives are offered on your trust?
More than one investment discipline should be available to your trustee.
Some professional trustees do not offer customized portfolio management
at certain asset levels. Other professional trustees offer clients
a choice between only one or two investment selections. Having access
to different investment management styles enhances the ability of a staff
of professionals to develop a customized investment strategy for your trust.
Your trustee should have the benefit of choosing assets across a wide range
of investment classes according to the financial goals and requirements
of your particular trust.
6. How does the total fee charged on your trust compare to others in
the industry?
Hidden trustee fees can deplete your trust's assets. Some trustees
may, on the surface, appear to charge a low-priced fee. After adding
a setup fee, administration fee, trust tax return fee, commissions on trades
and the like, what may seem like a low fee may turn out to be a lot higher
than expected. A competitive, all-inclusive fee schedule eliminates the
complexity of item-by-item charges.
You have every right to expect as much from your corporate trustee as
you do from other investment professionals. When you appoint a trust institution
as trustee, you enlist the services of seasoned professionals who should
devote their full attention to your personal needs, goals and wishes.
Experience and reputation should be the focus of any service decision.
Choose your professional trustee with care.
Great article. Well done.Such a move needs a huge amount of consideration and this article should help people considering this.Connor,
Thanks for the kind words.
It was my goal to make the first submission to SearchWarp really stand out.
Thanks again and all the best.
Joseph Hollak
Very informative article which could be a great help to someone seeking to set up a trust. Welcome to Search Warp.Linda d
