Aug 1, 2005 12:00 PM

By Barbara R. Hauser, special counsel, Private Client Department, Cadwalader, Wickersham & Taft LLP,

I have not always been an advocate of corporate trustees. Quite the contrary. I used to give a standard speech when my clients were wondering whom to name as a trustee. “You could appoint a corporate trustee,” I'd tell them. “But keep in mind that corporate trustees charge a lot; they have frequent staff turnover; and they invest conservatively in their own pooled funds with very low returns. On the other hand, they are permanent and cautious. So if you want a corporate trustee, be sure to add an individual co-trustee who will have the right to remove the corporate trustee at any time, for any reason.”

That's what I used to say. But during the last 10 years, I've changed my mind about the value of corporate trustees. The marketplace has changed. Some of my previous assumptions about cost and investment performance were disproved. I've also come to realize that there's one significant advantage to corporate trustees I hadn't previously taken into account: their ability to deal with generational conflicts.

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Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

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50 Years Ago This Month

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50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

Click here to view the most up to date guide (September 2011)

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