Many individuals who have established or are the beneficiaries of a trust often believe that their trust cannot be transferred from one trustee to another. In fact, while certain elements of a trust may not be changed, the person or institution named to act as trustee is usually not one of them. A trustee holds fiduciary responsibility to manage and administer a trust under the terms of the trust document in a manner most advantageous to the beneficiaries of the trust. In most cases, a trustee can be changed.
Why change trustees? An individual may wish to transfer his or her trust to a new trustee for a variety of reasons. One reason may be that once-familiar trustees (and the services they provide) have been replaced due to recent mergers in the banking industry, the traditional providers of personal trust services. Other reasons may include dissatisfaction with the current corporate trustee, lack of investment choices, poor performance from the trust’s current investments, high or increasing fees, statements that are difficult to interpret, and the wish to have a financial advisor involved in all accounts, including the trust account.
Still another reason an investor may wish to transfer his or her trust is the changing estate tax landscape. An investor who has named a friend or family member as trustee may find the often-changing estate tax laws too complex and may feel more comfortable with a more experienced trustee.
Your trust may be more flexible than you think. Most revocable and irrevocable living trusts allow you to change trustees. If you are a grantor or beneficiary who is seeking a new trustee for your trust, you may wish to consider an experienced professional trustee. A full-service financial professional is able to provide experienced trust officers who can work closely with you and your attorney or tax advisor.
For more information about trusts and investment management services, please call Brian P. Jacobs at 661-290-2022.