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Common Questions About Trusts
Here are answers to some of the most common questions about trusts and trust companies.
» What is a trust?
» What is a trustee?
» What does a corporate trustee do?
» What duties does a corporate trustee have?
» Why consider a corporate trustee?
» Why pay for a corporate trustee?
What is a trust?
A trust is a legal arrangement concerning the ownership, management and disposition of property or assets. A trust may either be revocable or irrevocable, depending upon the intent of the creator as well as the overall estate planning objective.
What is a trustee?
A trustee is the party that administers and oversees the trust property or assets. The trustee holds legal title to the trust property and acts as a fiduciary during the period of trust administration. A trustee may be an individual, or a corporation. More than one co-trustee may be appointed for a single trust.
What does a corporate trustee do?
A corporate trustee provides professional, independent and objective trust administration and management for a fee. Its primary responsibilities are directed by the provisions of the trust document, as well as the laws of the controlling jurisdiction.
What duties does a corporate trustee have?
A corporate trustee’s primary duty is to manage and distribute trust assets pursuant to the wishes of the grantor, as defined by the trust document. In addition, the trustee must:
- Develop an appropriate investment strategy that protects the interests of all beneficiaries.
- Assume legal responsibility and liability for proper administration of the trust.
- Assume legal responsibility and liability for the financial welfare of all trust beneficiaries.
- Investigate all claims made against the trust and oppose invalid claims, in court, if necessary.
Why consider a corporate trustee?
A corporate trustee offers several benefits not generally available through
a personal trustee. They include:
- Skilled professionals.
- Higher standards of performance.
- Access to special expertise and world-class investment managers.
- Sophisticated accounting systems.
- Continuity of administration.
» Learn more about the advantages of a corporate trustee.
Why pay for a corporate trustee?
When you consider the administrative, investment and management capabilities offered by Securian Trust Company, the cost of a corporate trustee is very reasonable. Securian Trust Company will conduct annual account reviews, oversee regular and discretionary distributions and provide detailed statements of all transactions. In many cases, the costs associated with out-sourcing these same administrative, tax, and investment management services exceeds the fees charged by Securian Trust Company.
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