The Role of Independent Trustees - Why is an Independent Trustee Crucial in a Trust?

Putting together a family Trust can seem intimidating that you will opt for the most convenient structure. But there is one entity that you should have to establish your Trust as convincing as possible before the courts: Professional Trustees. In this article, we clear up the reason why it is so noteworthy to involve a Professional Trustee with your family Trust.

The creator of the Trust has the choice, but not truly a prerequisite, to involve an independent professional trustee when preparing your Family Trust. To clarify, an independent trustee is not a beneficiary but this person has the right to vote on Trust decisions. In choosing an independent trustee, it will be most sound to choose a professional who will offer direction on the Trust’s activities.

Yes, it does not truly demand involving an independent Trustee to have a valid Trust, it is noteworthy for your peace of mind. Actually, a binding Trust can be composed of just you, technically serving as Settlor and Trustee, and your beneficiaries. But GRA strongly advocates getting an independent Trustee for various reasons.

In selecting an independent Trustee, this individual should be of enough maturity, sound character, and if possible, have legal understanding. This individual must be able to meet the job of appropriately discharging the obligations as a Trustee. The reason for this is that a professional Trustee validates the Trust. This guarantees that the Trust is not perceived as a sham by the courts.

Involving an independent Trustee makes the structure more robust. In effect, this makes it more hard for spouse and creditors to attack the Trust’s validness. This step certainly maintains your investments and assets sheltered from marital and creditors’ attacks.

GRA strongly recommends employing professional independent Trustees as it is conceived best practice. Sleep well at night and have some peace of mind, knowing your Trust is in good hands.

John Rowe is working with Gilligan Rowe & Associates. They are Chartered Accountants and are Specialist Accountants and Experts in property and family trusts.

Published by: John Rowe on March 30th, 2010 | Filed under Legal



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