Investment Management

Professional trustee services - the importance of choosing a trustee

It's critical that a trustee act in the best interest of your beneficiaries. It may be tempting to choose a friend or family member as your trustee. However, being a trustee can put this person in a difficult position with a high level of responsibility.

You have other options for choosing trustees including have an agent for trustee.

Agent for Trustee – assisting individual trustees

An agent for trustee assists an individual trustee with the management of accounts. The trustee retains access to all account details and operations. The agent for trustee provides valuable and efficient management services, such as:

  • Managing family/beneficiary dynamics
  • Investing assets prudently
  • Day-to-day administration and recordkeeping
  • Tax services
  • Proper safekeeping of trust assets

Professional trustee – safeguarding the assets fo the grantor

Trustees must follow the instructions in the trust document and must fulfill certain duties such as:

  • Invest assets in a prudent (conservative) manner, i.e. in a way that will result in potential reasonable growth with minimum risk.
  • Treat multiple trust beneficiaries impartially (i.e. not favoring one over another), unless the trust allows the trustee to do so.
  • Keep accurate accounting records of assets, liabilities, receipts, disbursements, and income, estate and gift taxes.
  • Record trustee actions and routine trust actions.
  • File tax returns.
  • Report to the beneficiaries and communicate information to relevant parties as the trust requires.
  • Keep personal accounts and assets separate from the trust assets, and ensure that trust assets are used only as intended in the trust document.