One of the greatest benefits of a revocable trust is the opportunity for professional management of the assets. With people living longer and health care costs continuing to rise, our savings must grow larger and last longer. With hundreds of investment options to choose from, deciding where to put your money can be very confusing. And if you make a wrong decision, it can be very costly.

A revocable trust offers you the opportunity of a corporate trustee, or a professional investment trust adviser. A corporate trustee is a bank trust department or trust company. Its employees can help build, manage and protect wealth when you put in a trust. A professional investment trust adviser is a professional with authority to advise and direct the trustee regarding investments.

When you set up a trust, you will name a trustee to manage the assets your trust controls. While you can choose just about any adult, there are very good reasons why you may want to consider a corporate trustee.
Because they manage trusts on a daily basis, they are familiar with all kinds of trusts, tax and estate planning strategies, and the legal responsibilities of a trustee.

They can manage the assets in your trust now and/or after you die as your trust directs–buying and selling assets, paying bills, filing tax returns, maintaining accurate records, and distributing income and assets. Most have experience with all kinds of assets, including stocks and bonds, real estate, farms, closely held businesses, mineral properties, international investments, and collectibles.

Because you have more professional management or advice, you should enjoy the potential of even greater investment returns. Corporate trustees give their full attention to managing trust assets – that’s their job. And because their staff collectively has more experience and resources than an individual, they often achieve better results.

After discussing your financial goals, risk tolerance and long-term objectives with you or your successor trustee, they will recommend the best investment strategy. Then, depending on how involved you want them to be, they can provide ongoing advice, or even make decisions for you or for your trustee, to make sure your investments stay on track to reach intended goals.

Because corporate trustees are regulated by both state and federal agencies, you have greater protection for your wealth. Moreover, because most courts consider them “experts,” courts expect them to meet higher standards than a nonprofessional. And your assets are safe; even if a bank or trust company fails,by law, trust assets must be kept separate from all other assets. For example, they cannot be loaned out, mixed with the corporate trustee’s own assets or used to satisfy its creditors. Because of these safeguards, trust assets are not insured by the FDIC; such insurance is unnecessary.

You are also protected against fraud, theft (for example, if an employee takes trust assets and disappears), or if they make an error administering your trust. But, of course, there is no insurance or bond that will protect you if your assets lose value simply due to a decline in market values.

A corporate trustee won’t become ill or die, divorce, go on vacation, move away or become distracted by personal concerns or emotions as an individual might. They follow your trust instructions objectively and faithfully, something family members are often unable or unwilling to do.

They routinely provide advice on investment, tax, retirement and estate planning issues, and can refer you to attorneys and other qualified professionals as needed. So the expertise you get is not limited to just investment advice.

Knowing you have selected someone with experience and integrity to manage your financial affairs now and/or when you are no longer able to do so yourself can be very reassuring.

As trustee, a corporate trustee has full responsibility for managing your trust assets according to your instructions. This would be an excellent choice if you are elderly and have no one you can trust to take care of your financial affairs. You may be widowed, have no children or other trusted relatives living nearby (or don’t want to burden them), or you and your spouse may be in declining health.

If you want to take advantage of a corporate trustee’s investment experience but still be involved, you could have one work with you or your successor trustee as co-trustee. Developing a working relationship with a corporate trustee now lets them become familiar with your objectives, your trust and your beneficiaries’ needs and personalities while you are around and able to provide guidance and input. It would also let you see how they would perform in your absence, let you evaluate their investment performance and service, and let you see how comfortable you feel with them overall – a kind of “trustee test drive.”

Even if you and your successor trustee are capable of managing the trust, a corporate trustee can be a wise choice. You may not have the time, desire or investment experience to manage your trust yourself. Or perhaps you just feel that someone with more time and experience could do a better job.

You could also name a corporate trustee as an agent. While a co-trustee has equal responsibility with you (usually both signatures are required to transact business), an agent can have as much responsibility as you wish.

You can have an agent manage only a portion of your trust’s assets (your stocks and bonds, for example) or just provide you with investment advice, with you making all final investment decisions.