At the most basic level, business transition planning is a strategy that can be put into play when a business is sold or changes hands. For company owners nearing retirement, a successful transition plan can play an important part in creating and preserving the value of the business after it has changed hands.
Atlanta Financial Blog
Benefits of Professional Trustees
What is a professional trustee?
When you set up a trust, you must name a trustee to manage and administer the assets in your trust. Generally, professional trustees are experienced individuals that work in a trust department in a bank or in a trust company.
Do you need a professional trustee?
In determining whether you need a professional trustee, consider the following:
- Family dynamics: Is this a blended family situation? Are you living with a non-related party? Is there a history of litigation or contentiousness between family members? Are there family members who cannot manage money?
- Complicated Administration: Can your family members handle the accounting and record keeping demands? Is there a complex disposition of assets? Do you have difficult tax situations?
- Special Assets: Is there a closely held business? Is there non-residential real estate?
- Burden Factor: Does your family have the necessary financial awareness, astuteness, and acumen?
If any of the above-mentioned situations apply to you, the possibility of appointing a third-party trustee should be considered. Third-party trustees offer many benefits, including:
- A professional trustee exercises independent judgment and discretion to reduce contention among the beneficiaries. This is especially important in blended families.
- A professional trustee typically has years of experience in the legal, tax, and administrative duties of executer and trustee. Doing it right the first time could save money in the long run.
- A professional trustee provides long term succession and oversight for trusts which will be around for a long time. Unlike an individual, a professional trustee has a continuing existence; death or disability will not interrupt service to you or your family.
- A professional trustee has a duty to ensure that the trust assets will be properly invested consistent with prudent investor standards.
- A professional trustee frees you and your family from day-to-day administration tasks.
A professional trustee can serve you in a number of ways. For example, if you do not have the time, desire, or experience to manage and administer the trust yourself, you can name a professional trustee to take over the responsibility of managing the trust and overseeing investment management, pursuant to your wishes. Furthermore, if you want to take advantage of a professional trustee’s experience but still be involved, you can designate yourself as trustee and a professional as co-trustee. Additionally, if you want to be the trustee of your trust initially, but want to leave the responsibilities to professionals when you are no longer able to manage the trust, you can name a professional trustee as a successor trustee.
In our experience, families oftentimes struggle with selecting the best and most qualified person to act as trustee. Remember to always consider potential conflicts that could arise between family members. If you are struggling with this decision, call me at 678-282-0296 to discuss.
The travel industry has begun to see growing demand as we move closer to summer. However, not all travel will be the same, as much of the demand is directly related to the COVID-19 vaccine and reduced CDC restrictions. Instead, industry trends have emerged based on individual comfort levels as they apply to different modes of travel.
Below we will explore some of the factors that have contributed to an increase in travel and how different industries are responding to it.
Following a year of economic instability, it appears that many of us are turning our attention to something that’s been around for decades, but has recently piqued national interest – inflation. In fact, a recent study found that people are Googling the word “inflation” at a rapid rate, with a peak not seen since 2010…
As mothers, sisters and daughters, women are often counted on to be caregivers for family members in need. Whether it’s something as small as a cold or as debilitating as a terminal illness, women are typically the ones to care for and help out when a loved one is sick. But what happens when the caregiver is in need of her own care? Too many women are stuck facing this dilemma head on, instead of preparing for it while there’s still plenty of options, resources and time ahead. Below are a few reasons why it’s so important for women to plan for their own long-term care strategies now.