When creating a trust you have the opportunity to name someone else or a corporate entity to serve as a trustee. The trustee needs to administer the terms of the trust. All trusts require some level of administration.
A few of the factors to consider in deciding whether or not a member of your personal life or a professional should be named as the trustee include the complexity of the estate, the recipients of the assets, the assets involved and other variables. A professional trustee is someone who is not the beneficiary of a trust.
This can be an institution or a person hired to manage trusts for one or more beneficiaries. A professional trustee keeps liability in mind, is objective in terms of the management of family dynamics and is skilled. Professional trustees are recommended when the beneficiary is a minor, when a family member is no longer willing or able to serve as a trustee, when there are high value assets inside the trust, when the beneficiary has special needs or a disability or when it is seen to be in the best interests of the beneficiary.
Professional trustees are compensated for the work they do in administering a trust and this can range anywhere from 1% to 3% of the total assets inside the trust. If you are ready to establish your own trust, contact an experienced estate planning lawyer today to learn more.