Why should I use a Professional Trustee?
Many people are tempted to appoint children or other family members as Trustees. The Trustees are also often the beneficiaries to the deceased's estate and this fact may pose some real problems after the death of the Settlor (the owner of the Trust).
Once the deceased's assets have entered the trust, a Trustee meeting must be held and any decisions regarding the distribution of these assets have to have the agreement of ALL the Trustees. As we are all aware this can often prove to be an issue within some families.
Appointing a professional Trustee ensures that a totally unbiased approach is taken when dealing the deceased's assets and that the Settlor's wishes are completely upheld.
The role of a Trustee can be extremely daunting for any untrained person. Often decisions will be made which may not be completely in the interest of the beneficiary(s). This may be simply because the Trustees do not have a clear understanding of the impact their decisions may have on the beneficiary's inheritance.
Consideration would be given to the tax status, financial status and marital situation, of the intended beneficiary (i.e. if the beneficiary were undergoing financial difficulties or entering into Divorce Proceedings).
This ensures that the assets would not be lost to creditors or future ex-spouses.
Custodis' advice can be crucial in preserving assets and ensuring as much as possible of any amount is received by the intended beneficiary(s) and is not lost to tax, divorce or in settlements to creditors.
