
TILL HEZEL
Kathy Christoffel
Kathy Christoffel, Argent Financial Group
Estate planning can be an intense process, and factors such as federal and state tax laws, types of property or assets owned, or unique family situations can make it even more complex and challenging. In many cases, using a trustee or executor to accomplish your estate planning goals may be recommended.
One of the most important decisions in this process is choosing and naming the person or organization that will serve as the fiduciary. It could be a family member, a friend, a trusted advisor, or even a bank that offers those services. However, there are advantages and disadvantages to choosing an individual, and in many situations, a corporate fiduciary may be a better fit. Here’s why:
1. A corporate fiduciary has the expertise and the experience to fulfill its duties. An individual serving as a fiduciary could unintentionally breach their duty simply because they do not understand their duties or know what resources they need. On the contrary, corporate fiduciaries are up to date on current tax laws, know how to manage investments and understand how to invest to meet the various interests of the beneficiaries. A corporate fiduciary also will have experience dealing with complex assets, interpreting legal documents, and working through complex family situations.
2. A corporate fiduciary has the systems and infrastructure in place to accomplish its responsibilities. Not only does a corporate fiduciary understand the various components of its role, it also has all necessary people and systems to fulfill its job. An individual may not have access to resources to properly accomplish the duties of their role, which could lead to inefficiencies and possible liability.
3. A corporate fiduciary will exist beyond the natural lives (and health) of individuals. Oftentimes, estate plans require a fiduciary to serve for many years, which a corporate fiduciary has a greater chance of doing from beginning to end. An individual may not be able to serve through a full term of service due to age or health, requiring a new fiduciary to step in midway through the life of a trust. Employees of a corporate fiduciary may change, but the organization brings continuity.
4. A corporate fiduciary is not influenced by sensitive family issues or past experiences. Although an individual may have the benefit of knowing the family, it could also be a detriment in dealing with beneficiaries due to bias. A corporate fiduciary has an obligation to remain objective, making necessary and critical decisions free of these biases.
Even the most detailed, specific estate plan could fail if the fiduciary does not fulfill its responsibilities, intentionally or not. Using a corporate fiduciary may be the best way to ensure your estate planning expectations and goals are met.
To learn more about these trust and estate planning strategies, please contact me via email ([email protected]) or phone (817-502-3586), or reach out to any of our Argent Trust Company professionals at 817-502-2931. We are ready to help.
by Kathy Christoffel, Argent Financial Group