Some people in North Carolina recognize the value of establishing trusts as a component of their estate plans. While trusts can help people avoid probate and distribute their assets in a tax-advantaged manner, it is important that individuals do not make mistakes when they are choosing who will be tasked with administering their trusts.
Trust administrators have multiple duties. They must adhere to the provisions of the trust and comply with legal, fiduciary and administrative requirements. Trust administrators must invest the assets held by the trusts in a way that protects the interests of the beneficiaries. When people choose family members or friends to serve as the administrators of the trusts, the chosen people may not be able to effectively handle all of the duties that are involved.
It might be a better idea to choose a third party instead of a friend or family member to serve as a trust administrator. Banks and private trust companies may be willing to serve in this role. When people hire corporate trustees, there may also be a reduced successor trustee risk. Another choice is a bifurcated model in which the corporate trustee is directed by the financial adviser of the client.
Trusts can be very beneficial to heirs, and there are many different types of trusts that can be established to accomplish a variety of different goals. People who want to establish trusts might benefit by getting help from experienced estate law attorneys. The attorneys may help create the trusts that best accomplish their clients’ goals. They might also help clients to choose trustees who can handle the many tasks that are involved with trust administration. By getting help from an attorney, people may avoid making mistakes that could cause future problems with their trusts.