Sioux Falls, SD -- (SBWIRE) -- 01/04/2019 -- There are many options when choosing a trustee to carry out the necessary trust administration services. Many people choose individual trustees like family members or friends. Others hire large banks or investment firms. However, these groups aren't able to deliver the same objectivity as an independent corporate trustee. Sterling Trustees, an independent corporate trustee, offers objective and dependable trust administration services.
An independent corporate trustee is better than the alternatives because they're unbiased; their compensation is based on a fixed fee as opposed to a fee calculated based on assets under administration, a model that is not always in the best interest of the client. Without any outside influences, the only goal is to preserve and protect trust assets.
Individual trustees are generally family members or close friends of the grantor who offer their services at a low fee or no fee whatsoever. While the grantor may think he is saving money with this model, there are significant drawbacks including a potential conflict of interest. Because the trustee is so close to the family, it's difficult for him or her to make unbiased judgements when it comes to treating each beneficiary fairly, not to mention the lack of experience and legal and tax expertise needed to administer a trust. This can turn out to be an expensive way to go in the long run.
If a grantor chooses a bank or investment firm to provide trust administration, they should understand that these parties will be concerned with what is in the best interest for their company. Since most bank and investment firms charge based on assets under administration, when it comes time to making a distribution to a beneficiary, decreasing the corpus of the trust lowers the base from which they can earn fees. This sort of monetary motivation clouds their objectivity, ultimately making decisions that may not be in the beneficiary's best interest.
Grantors who engage independent corporate trustees like Sterling Trustees deal with expert trust officers who administer the trust completely objectively because the firm is independent. These trustees are unmatched in reliability, as sickness, death, injuries, or vacations do not prevent administration, The trust officers are highly experienced in legal and tax requirements, and they are able to execute the fiduciary duty assigned to them.
To learn more about Sterling Trustees and their objective approach to trust administration, visit them online at https://sterlingtrustees.com/ or view a short educational video on independent corporate trustees.
About Sterling Trustees
Sterling Trustees is South Dakota-chartered trust company located in Sioux Falls, South Dakota. By working independently, the firm allows its clients to avoid the extra costs and conflicts of interest associated with large financial institutions. Sterling Trustees' main goal is to keep assets safe while remaining objective.