Peninsula Bay Trust Co.’s special asset services include commercial, rural, and large agricultural trust.
At the end of 2020, there were about 22 million millionaires in the United States, with the East and West coast leading the pack. As families begin to accumulate wealth, one of the smartest decisions is establishing a trust and choosing a right trustee to manage and protect their hard-earned assets.
What is a Trust?
A trust is a fiduciary contract that gives a 3rd party, a trustee, the right to hold title to property or assets and to make financial decisions on behalf of and in the best interest of the client. Trusts can be set-up in a variety of ways with instructions as to how and when different assets can be bought, sold, or passed down to the beneficiaries.
“The right corporate trustee creates beneficiary harmony”.
- Mikkela R. Sweet, Esq., CTFA, Co-Founder, President & Chief Trust & Fiduciary Officer
Some families will look to a family member or a trusted friend to function as a trustee, this dynamic has the potential to create disharmony within a family and can be influenced by emotions and personal agendas. In addition, a trustee may be required to make complex financial decisions and undertake ongoing duties that they simply do not have time for nor expertise. For example, some of the standard duties could include making investment decisions, managing trust assets, paying bills, maintaining records, making income and principal distributions to beneficiaries based on trust agreement, and filing complicated tax returns and reports.
How To Choose a Corporate Trustee
A Corporate Trustee is a bank trust department or an independent trust company that can help you build, manage, and protect wealth when you put your assets in a trust. Collaborating with a corporate trustee has countless benefits such as professional experiences in trust matters that family members or friends simply do not have. A fiduciary ensures that the trust reflects the creator’s intentions, and that current and future generations benefit from a neutral, informed, and experienced third party bound by fiduciary laws.
Here are five suggestions for selecting the right corporate trustee for your beneficiaries:
Because corporate trustees have experience in trust management, they are familiar with several types of trust structures, tax and estate planning strategies, and legal responsibilities. Corporate trust companies have experience with all kinds of assets, including stocks and bonds, real estate, farms, closely held businesses, international investments, and collectibles. They manage trust assets according to specified instructions such as buying and selling of assets, paying bills, filing tax returns, maintaining accurate records, and distributing income. A corporate trustee will perform all these tasks on an ongoing daily basis while navigating complex accounting, taxation, and legal issues.
Collaborating with a corporate trustee can avoid and alleviate potential family conflict. Family relationships can be difficult, emotional, and full of resentment. Even if there is a trust in place outlining intent and directions, it can be complicated for a family trustee or close friend to act objectively. A corporate trustee, on the other hand, is an independent third party that can make objective and bias-free decisions. They will follow the trust instructions objectively and faithfully, without any bias or family dynamic consideration. They can also mediate and assist with beneficiary dispute resolutions.
Just as a Registered Investment Advisor (RIA), a corporate trustee has a fiduciary responsibility to never place their own self-interest above what is best for the beneficiaries of the trust. They refrain from self-dealing and avoid any conflict of interest.
“One of the important responsibilities of corporate trustees is asset management”.
- Paul J. Barulich, Esq., Co-Founder, Chairman & CEO
Higher Investment Return Potential
They constantly evaluate best financial strategies and work with investment management firms to help maximize returns on investments. Corporate trustees can collaborate with an appointed financial advisor or directly with a client to create an investment strategy based on financial goals, risk tolerance and long-term objectives. A grantor of the trust can decide the level of involvement of a corporate trustee such as offering advice or having the right to make investment decisions.
Continuity And Dependability
One of the most important reasons for a trust is to provide for the future. As time passes, age or illness can prevent a family trustee from performing their duties. In addition, if an individual becomes sick or is unreachable due to a vacation, it can cause a problem if there is an urgent situation. A corporate trustee can ensure continuity for the entire term of the trust and immediately address whatever needs and concerns arise.
How Peninsula Bay Trust Company Can Help with Corporate Trustee Needs
Choosing the right corporate trustee can be one of the most important decisions a grantor can make. Peninsula Bay Trust Company is the first founded Northern California corporate trustee dedicated to solely providing trustee and fiduciary services. PenBay brings sophistication, regularity and efficiency to asset management and beneficiaries by delivering superior service, overlaid with extensive knowledge and expertise
We deliver complex fiduciary services in a straightforward way due to following advantages:
Corporate trust management processes can be inefficient, manual, and paper ridden. Because we are in the heart of Silicon Valley, we created our own digital approach to trust management. We use modern SaaS tools to automate every element of our service and aggregate asset, estate, and transactional information in one place to better service our clients. Our unique technology allows us to consolidate customer information to effortlessly create simple snapshot analysis and reporting for strategy creation and decision-making. Our digital tools make the process more efficient, accurate, transparent, and flexible, giving us more time to manage trusts, strengthen partnerships and nurture relationships.
We are fluid and will partner with any Asset Manager, Investment Advisor, or Financial Planner with whom you have a valued, long-standing relationship. Our cloud-based technology can easily integrate with that of your custodial partner so we can work together to create a comprehensive financial picture for you and your beneficiaries.
We are nothing without the industry relationships that we have built. Because we value and nurture relationships over all else, we have an extensive list of best in the industry contacts that are available to you and your loved ones. From accounting to attorneys, title officers to bankers, property managers to home care workers, and drivers to professional case managers, we manage these connections for you while providing corporate trustee services.
At Peninsula Bay Trust Company, we pride ourselves on bringing corporate trustee solutions driven by compassion, sophistication, and technology so you can feel confident that every detail of the administration of your trust, is executed with the same attention and consideration that you put into creating it. If you have any questions about or are looking for trustworthy corporate trustee services, please get in touch.