Tend to the accounting and investing of the assets;
Provide regular statements summarizing account activity;
Answer the financial questions of the beneficiaries; and
Diffuse a heated dispute or two.
Ten years later, Jane happily reports to us that she maintains a warm relationship with John's children and grandchildren.
If you have a client like Jane, a trustee who no longer wants the responsibility, it's important that he or she find the right corporate trustee. Laird Norton Tyee is both an RIA and a trust company, but those advisors who cannot or do not want to offer corporate trustee services must ensure that their client finds the right entity for the task, if only to make their own jobs easier.
Clients looking for a corporate trustee must consider a company's skills. Besides its ability to report to the beneficiaries or keep apprised of estate tax law changes, a trustee must also possess a simple knack for handling people: As part of its fiduciary job description, the corporate trustee should be able to settle heated arguments or tactfully decline an unusual request for funds. It goes without saying that your client should seek a corporate fiduciary that has the ability to act impartially.
To help your client select the right corporate trustee, encourage him or her to consider the firm's experience. Does the firm have internal advisory committees? Can the staff at a company offer continuity and easily transfer knowledge if one of its team members leaves? Are they unbiased and professional? Are they aware of changing laws and best practices?
Encouraging your clients to remove, or at least share, the sometimes awkward responsibilities that come with serving as their trustee is one way you can ease their burden if a second marriage sadly ends before its time.
Barbara Potter is the executive vice president and managing director of fiduciary services at Laird Norton Tyee.