If you have a trust, you need to prepare for all possibilities—this means naming a successor trustee who would take over the management of the trust if the original trustee were to become incapable, whether due to death, incapacity, or any other reason. Choosing a successor trustee is a difficult decision for many people. However, in many cases, a professional fiduciary—who is an expert at managing trusts—is your best option.
What is a Professional Fiduciary?
A professional fiduciary is a person who is licensed in your state to oversee trusts. These individuals have passed an exam, and maintained their professional standing with continuing education. Fiduciaries are bound to operate in good faith, and put the interests of their clients and the trust ahead of their own.
Four Advantages of Hiring a Professional Fiduciary
If you’re considering hiring a professional fiduciary to serve as a successor trustee, there are several good reasons to so.
Here are four of the most important:
- Professional fiduciaries are held to strict professional standards. Professional fiduciaries are licensed and regulated by the state, and are required to stick to strict ethical guidelines. They are charged with acting in the interests of their clients, and not their own interests.
- Hiring a professional fiduciary reduces the burden on your family. Managing a trust is complicated business, and making a family member a trustee—particularly a successor trustee—can be a heavy burden to place on their shoulders. Hiring a fiduciary allows you to place that burden in the hands of a trained professional instead.
- Professional fiduciaries are experienced and versatile. In addition to acting as trustee, professional fiduciaries can often perform a variety of other useful functions, such as serving as an agent for a durable power of attorney. Professional fiduciaries also often have a background in other related professions, such as accounting and law, which gives them a rich stock of experience to draw on.
- Professional fiduciaries are more affordable than a bank or trust company. A bank or a specialized trust company can serve as a trustee, but not only do these options fail to offer the same level of personal attention as a professional fiduciary, they are often more expensive… particularly if you hire a corporate trustee.
For these and other reasons, a professional fiduciary may be the best option for you and your family when it comes to naming a successor trustee.
At Santa Barbara Fiduciary, we have many years of experience helping individuals manage their trusts. We empower individuals to move confidently through major life changes, knowing they will be living a life on their own terms.
To find out more about us, or to see if hiring a professional fiduciary is the right choice for you, please do not hesitate to contact us at (805) 308-6842.
