Oklahoma City, Oklahoma Trust Attorney

When a trust is created, a trustee must be assigned in order to administer and disperse the funds involved. Whether a trustee is a family member or a financial institution, each serves as a fiduciary and must adhere to certain requirements in order to avoid liability and litigation. While accountability and transparency may be greater in the case of a corporate trustee (financial institution), higher fees and less control may be involved as well. At the law office of Donna J. Jackson, we explain what must be taken into account when assigning trusteeship. Regardless of whether you ultimately decide to assign a family member or use a corporate trustee, there are a number of legal considerations that must be understood first. As your attorney, Donna J. Jackson explains what is involved in each and assists clients in determining what will work best for them.

If you have questions regarding the creation of a trust and the appointment of trusteeship, contact estate planning lawyer Donna J. Jackson today.

Assigning a Family Trustee

Depending on the amount of money involved and the purposes of a trust, assigning a family member as a trustee involves certain advantages. Perhaps the most important advantage is financial since appointing trusteeship to a family member usually means there is no fee associated with administering a trust. Likewise, there may be more discretion available to a family member in managing certain aspects of a trust, especially when it is intended for the good of other family members.

The disadvantages associated with assigning a family member trustee are usually associated with accountability and financial mismanagement. A family member who is appointed trustee is unlikely to be bonded and certified. Consequently, he or she will not be insured should a trust be mismanaged. As a result, if trust funds are depleted or mismanaged, the beneficiary will not be able to recover losses from insurance.

Corporate Trusteeships

Corporate trustees are typically handled by financial institutions that are bonded, certified, and insured. Since they are in the business of managing trusts, they usually have the internal accountant and reporting resources needed to file annual reports required under law. Additionally, if a corporate trustee violates their fiduciary responsibility and mismanages a trust, funds can usually be recovered through litigation or a corporation's insurance.

While a corporate trustee offers a number of services and a level of accountability not available from a family member, they do not administer trusts for free. In fact, depending on the money and type of trust involved, the cost of assigning a corporate trustee could be substantial.

Estate Planning - Determining what works Best for You

While assigning a spouse or relative to administer a trust may create a level of comfort and confidence, there are other considerations that must be taken into account. Perhaps the most important is the transfer of trusteeship should the appointed trustee pass away. As your attorney, Donna J. Jackson explains what is involved in planning for the transfer of trusteeship and what needs to be considered when deciding between a family member and corporate trustee.

To schedule an appointment and learn more, contact trust attorney Donna J. Jackson today.