Everything You Wanted to Know About Corporate Fiduciaries
How do corporate fiduciaries evaluate potential trustee opportunities? And how should advisors and their clients evaluate corporate trustees, particularly in light of recent developments?
How do corporate fiduciaries evaluate potential trustee opportunities? And how should advisors and their clients evaluate corporate trustees, particularly in light of recent developments? Corporate trustees are often sought when there are family conflicts or family dynamics issues, potential or actual litigation, complex or unusual assets or trust structures. Fiduciary relationships are like marriages – the relationship may start off well, but it can be difficult to extricate yourself if things do not work out. Corporate fiduciaries need to understand what they are accepting, the parties they are dealing with and the assets they are accepting responsibility for; and ultimately decide if the reward outweighs the risk. Similarly, advisors and clients need to evaluate potential corporate trustees for security and longevity. Topics to be covered include AML/KYC issues in working with high-risk clients, non-traditional assets and concentrated positions, due diligence, time constraints in acceptance and determining which trust company is the right match for your client.