Choosing the Right Trustee

If a trust is necessary, you must have a trustee. A family member, typically a child or close relative, is sometimes available to serve. If not, you must consider hiring a professional trustee. The Pros and Cons of the various choices are set forth below:

Pros and Cons of a Close Family Member

Pros	Cons
Intimately familiar with family dynamics and the needs of individual beneficiaries	There may be family dynamics that create jealousies and conflicts
Can serve at no or at greatly reduced fees	May not possess the required tax and investment knowledge or the experience and knowledge necessary to select good advisors
The ability to serve small estates	The demands of managing the trust may interfere with the quality of life of the trustee’s own family

Pros and Cons of a Boutique Trust Company

Pros	Cons
Highly personalized service	Very high minimums (typically $10 million to $25 million +)
Deep expertise in multi-generational planning	Can be highly selective in accepting new clients
Often, independent from major banks and brokers in selection of trust investments	May require consolidation of all family assets for management
Many offer family office type services with in-house attorneys, CPAs and others	Less suitable for smaller estates

Pros and Cons of a Bank or Brokerage

Pros	Cons
Strong internal controls and compliance policies	High minimums (typically $5 million or more)
Professional and experienced staff	Lack of flexibility on the part of individual decision makers
Consistent administration and continuity	Services and investment options may be limited to in-house products
Financial stability and longevity	Tend to be more bureaucratic and impersonal
Can handle complex estates and assets requiring specialized expertise	Fee structures tend to be rigid and inflexible

Pros and Cons of a Professional Private Trustee

Pros	Cons
More familiar with family values and dynamics	An individual can die or become incapacitated. John has a robust succession plan in place
Potentially lower costs and fees	An individual may lack the expertise or experience to administer the trust business. John is a licensed CPA, PFS, member of the National Advisors of Trust, and Attorney at Law
Flexible, rapid and highly personalized decision-making	None
Great option for simpler estates regardless of size	An individual may not be insured or subject to government oversight and audit. Focus Trustee is insured by a division of Berkshire Hathaway and is registered with the Georgia Secretary of State as an investment advisor. John is subject to the oversight and membership requirements of his various professional organizations.