The Cost of Corporate Versus Individual Trustees

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As I wrote in Advisor Perspectives in September of 2018 (The Question Every Advisor Hopes Their Clients Ask), there is a simple metric all advisors can rely on with certainty that indicates they have a client who will remain loyal through the most difficult of times and market conditions. Surprisingly, it is not linked to investment performance or market returns, but rather comes in the form of a direct request from your client:

Would you consider being named as the successor trustee in my trust if something happens to me?

The article went on to discuss the importance of your response as well as the associated liabilities and ramifications if you are unprepared for the question.

Let’s examine in greater detail the ensuing successor-trustee conversation with clients should you be presented with the question, or better yet proactively introduce it with your client.