What is a corporate trustee?

A corporate trustee is a type of trustee that is a corporation, typically a bank or trust company, that is authorized to act as a trustee for various types of trusts. Corporate trustees are often chosen to manage trusts due to their expertise in managing financial assets and ensuring compliance with legal and regulatory requirements.

Corporate trustees typically have a team of professionals that are knowledgeable about trust administration, investments, and estate planning. They are responsible for managing and investing trust assets, distributing trust income and principal according to the terms of the trust agreement, and ensuring that the trust complies with all relevant laws and regulations.

One of the major advantages of using a corporate trustee is that they provide professional and impartial management of trust assets, which can help to avoid conflicts among family members or beneficiaries. Additionally, corporate trustees are generally more experienced and have the resources to handle complex financial matters that individual trustees may not be equipped to manage effectively.

However, using a corporate trustee may come with higher fees compared to an individual trustee. It is important to carefully consider the needs and goals of the trust before selecting a trustee, whether it be an individual or a corporate trustee.