The Need For Professional Trustees – Why is an Independent Trustee Important in a Trust?
March 21st, 2010 Filed under: ab trust,Executor Fees,sample wills,Trusts attorney — Estate Planning Author
Setting up a Trust can seem intimidating that you will opt for the simplest structure. But there is one entity that you need to include to make your Trust as credible as possible before the courts: Professional Trustees. In this article, we clarify why it is so important to have a Professional Trustee with your Trusts.
You have the option, but not really a requirement, to have an independent trustee when setting up your Family Trust. An independent trustee is not a beneficiary in the trusts yet this person or entity votes on Trust decisions. In choosing an independent trustee, it will be most sound to select a professional who will provide guidance on the Trust’s activities.
Yes, it does not really require having an independent Trustee to have a valid Trust. In fact, a valid Trust can be composed of just you, technically serving as Trustee and Settlor, and your beneficiary. But GRA strongly recommends having an independent professional Trustee for several reasons.
In choosing an independent Trustee, this person should be of sufficient maturity, sound character, and if possible, professional and legal knowledge. This person must be able to take on the task of properly discharging the duties as a Trustee. The reason for this is that a professional Trustee strongly verifies the validity of the Trust. This ensures that the Trust is not perceived as a sham by the courts.
Including an independent professional Trustee makes your Trust more robust. As a result, this makes it more difficult for creditors and spouse to attack the Trust’s validity. This move certainly keeps your assets and investments even safer from matrimonial and creditors’ claims.
GRA strongly recommends utilizing professional independent Trustees as it is considered best practice. Sleep well at night and have some peace of mind, knowing your Trust is in good hands.
John Rowe is working with Gilligan Rowe & Associates. They are Chartered Accountants and are Specialist Accountants and Experts in property and family trusts.
