Family members are often chosen to act as the trustee in Michigan when a person dies. However, you may want to utilize a corporate trustee if you’re planning your estate and you don’t feel confident about this choice due to family dynamics or a complex situation. Doing so can provide increased asset protection, experience, objectivity and expertise.
What’s the top reason for utilizing a corporate trustee?
One of the top reasons you may want to use a corporate trustee instead of a family member is your family’s dynamics. If you can foresee squabbling occurring after you die when a family member is chosen to act as a trustee, it may be best to use a corporate trustee and bypass family members. Doing so helps avoid resentment or hurting one of your family member’s feelings in the administration of the trust.
Are you dealing with a complex situation?
You may also want to use a corporate trustee for a complex situation. In this situation, unique tax and legal needs are usually required that may be beyond the scope of a family member’s skills and knowledge. A corporate trustee has the objectivity, experience, and resources required to complete this task correctly. They have all of the beneficiaries’ best interests in mind. They are impartial to the outcome, which may not occur if you have a blended family with children from other relationships.
Providing asset protection
You can also have problems if a beneficiary is serving as a trustee. Using a corporate trustee removes this possibility. They take this fiduciary obligation seriously as they know every move they make can be scrutinized. They will do their best to be fair and avoid the possibility of litigation.
Using a corporate trustee can be advantageous if you’re dealing with a complex situation. You want to provide asset protection and avoid having problems within your family after you’ve died.
