What Protections Can a Corporate Co-Trustee Provide?

Aug 17, 2021 | Understanding Trust Administration

Naming a trust company to serve as trustee or co-trustee often provides more client protections than utilizing a sole individual trustee. Trust companies are monitored by independent and government entities. This promotes effective implementation of processes and procedures and compliance with applicable regulations. Corporate trustees like Cumberland Trust operate as a “directed trustee,” allowing the grantor or the beneficiaries to use their preferred financial advisor to handle the investment management of the trust’s liquid assets. Utilizing a directed trustee eliminates the inherent conflict of interest that can exist when a trustee also manages the assets of the trust. Under this model, financial advisory firms also add an additional layer of safeguards to trust accounts by overseeing invested assets and account activity.

Serving as trustee or co-trustee for a family is an important job that requires a great deal of bookkeeping and many administrative duties, which trust companies are better equipped to undertake. Trust companies often have more standardized record-keeping and reporting practices in place to ensure all aspects of administration of an account are properly carried out and accurately documented.

As families in the U.S. evolve, many life changes have the potential to impact trust and estate administration and planning. Every family is different and has a different set of priorities and needs. We believe the protections and continuity a corporate trustee or co-trustee provides is a compelling reason why families should consider Cumberland Trust. Whatever your family’s goals, Cumberland Trust’s dedicated professionals are committed to helping you reach them. We offer the expertise, unbiased support, and the consistency you deserve, and are uniquely positioned to help you protect your family’s legacy.