Magazine article The CPA Journal

Is an Individual or Corporate Fiduciary Best?

Magazine article The CPA Journal

Is an Individual or Corporate Fiduciary Best?

Article excerpt

Corporate fiduciaries (banks and trust companies), have many advantages over individuals as executors and trustees. The are more secure, are automatically bonded, can avoid conflicts of interest where children or other close relatives would otherwise serve as trustees, are excellent record keepers, provide continuity for long-term trusts, normally are more experienced so as to minimize mistakes (in investments, administration and tax decisions), and lessen the need to hire outside counsel. The disadvantages are that they may lack the personal touch, are subject to turnover in their trust officers, often have difficulty in managing active businesses and farms, and at least initial, may be unfamiliar with the family situation involved.

The fact that corporate fiduciaries are often termed conservative in investment strategy and administration may be an advantage or disadvantage, depending strictly on point of vie. A given corporate fiduciary's total fees may be more or less than what an individual would charge, depending on the size of the estate, the corporate fiduciary's fee structure, the expertise of the individual trustee relative to such individual trustee's need to retain outside investment, tax and legal counsel, and the aggressiveness of the individual trustee in charging fees. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.