Result Oriented Solutions - Independenttrust
For Advisors

What is a Corporate Trustee?

A corporate trustee is a bank or trust company that takes on the responsibility of managing trusts, estates, and other types of financial arrangements. This entity acts as the fiduciary, holding and managing assets on behalf of the beneficiaries according to the terms set forth in the trust document. Corporate trustees are distinguished by their expertise, professional management, and impartiality in handling trust affairs, offering a range of services that include investment management, record-keeping, tax planning, and the distribution of assets to beneficiaries.

One of the primary advantages of appointing a corporate trustee is their depth of experience and knowledge in financial and legal matters related to trusts. They are well-versed in navigating complex investment landscapes and regulatory environments, ensuring that the trust is managed efficiently and in compliance with legal requirements. This level of expertise is particularly beneficial for complex trusts or when the trust holds diverse assets.

Corporate trustees also provide continuity in the management of the trust. Unlike individual trustees, who may become incapacitated or pass away, a corporate trustee ensures ongoing administration of the trust over its entire term. This can be especially important for trusts intended to last for multiple generations or those established to provide for beneficiaries over a long period.

Impartiality is another significant benefit of a corporate trustee. They act solely in the best interest of the beneficiaries, free from personal bias or conflict of interest that might affect individual trustees. This impartial stance helps in making fair and balanced decisions, especially in cases where beneficiary interests may conflict.

However, employing a corporate trustee comes with costs, which can vary depending on the complexity of the trust and the services provided. Therefore, it’s crucial for those considering a corporate trustee to weigh these costs against the benefits of professional management and expertise. 

In summary, a corporate trustee provides professional, impartial, and continuous trust management services, making them an ideal choice for those seeking to ensure their trusts are managed efficiently and according to their wishes. Their expertise in legal, tax, and investment matters makes them valuable partners in securing the financial future of beneficiaries.

Independent Trust Company is licensed and headquartered in South Dakota helping families throughout the United States access and benefit from the numerous advantages of South Dakota trusts.

The Independent Trust Company can help you select the right trustee for your family’s legacy for years to come.

We are a South Dakota Trust Company helping families succeed with generational wealth transfers by preserving their assets – as well as their legacy. 

Please contact us here to begin the process. Or please call us at (605) 737-5100.