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  • Home
  • About Us
    • Gratia Schoemakers
      • Community Outreach Program
    • Testimonials
  • Virtual Services
  • Estate Planning
    • Estate Planning Basics
    • Last Will and Testament
    • Revocable Living Trusts
    • Durable Power of Attorney
    • Medical Power of Attorney
    • Living Will
    • Family Estate Planning
    • LGBTQ Estate Planning & Asset Protection
    • Kids Safety Plan™
    • Business Succession Planning
    • Guardianship
      • Guardianship Planning
    • Special Needs Planning
    • Legacy Preservation Planning
    • Asset Protection
    • Trusts
    • Pet Trusts
    • Gun Trusts
  • Probate
    • Texas Probate Guide
    • Probate of a Will
    • Texas Affidavit of Heirship
    • Texas Small Estate Affidavit
    • Texas Heirship Determination
    • Texas Muniment of Title
    • Trust Administration
  • Family Law
    • Divorce
    • Collaborative Divorce
    • Mediation
    • Custody / Visitation
  • Blog
  • FAQs
    • FAQs – Videos
    • FAQs – Estate Planning
    • FAQs – Beyond Money in Estate Planning
    • FAQs – Divorce and Estate Planning FAQs and Myths
    • FAQs – Estate Planning for Newlyweds Myths and FAQs
    • FAQs – Estate Planning for Young Adults
    • FAQs – The Estate Planning Cast of Characters
    • FAQs – Expecting an Inheritance
    • FAQs – Myths and FAQs – Planning for Conflict Prone Families
    • FAQs – New and Expanding Families
    • FAQs – Pet Trusts
    • FAQs – Probate
    • FAQs – Standalone Retirement Trust Myths and FAQs
    • FAQs – Trust Modifications
    • FAQs – Unwinding Obsolete Planning
    • FAQs – Why You Want to Avoid Probate
    • FAQs – Year-End Planning Myths and FAQs
  • Contact
    • Virtual Estate Planning Login
    • Client Portal

How Is a Corporate Trustee Different? 

February 23, 2022 By Gratia P. Schoemakers, Esq.

In its simplest terms, a trust is a legal arrangement in which a trustee holds and manages assets for the benefit of one or more beneficiaries. The trustee owns the assets, enters into contracts on behalf of the trust, manages the trust’s investments as its trustee, and follows the trust’s instructions on making distributions. A trustee can be one-person, multiple people, or a company. 

Duties of a Trustee

The duties of a trustee are many, as a trustee owes a fiduciary duty to the beneficiaries of the trust. Some of these duties include acting in good faith, exercising reasonable care in the administration of the trust funds, keeping proper books and records for the trust, carrying out the trust terms as laid out in the trust document, avoiding any conflicts of interest, and not personally benefiting from his or her position as a trustee – except as where provided by the trust document or under applicable law.

Benefits of Corporate Trustees

Corporate Trustee

When you have a corporate trustee, as opposed to an individual trustee, the company is a trustee.  The benefits of a corporate trustee include impartiality and professional judgment – unlike individual trustees who may be subject to family politics or favoritism.  Moreover, managing trusts is the corporate trustee’s primary duty – as opposed to an individual trustee who can often have other personal, family, and career responsibilities that will serve as a constant distraction.  Corporate trustees will likely have better recordkeeping habits which can be helpful in the case of audits from the IRS or state tax agency.  Finally, a corporate trustee, because it is a company, lives forever and cannot become incapacitated like a person.  As a result, the succession of trustee authority is typically more predictable and smoother.

Bottom Line

When you decide to set up a trust as part of your estate plan, know that you can do so as an individual or a corporate trustee. Each has its own advantages. If you need assistance in understanding this process and choosing the right type of trustee for your particular situation, contact us today! Call our office at 832.408.0505 or schedule your appointment right now.

Filed Under: Estate Planning, Trusts Tagged With: Trustee

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