The benefits to families of appointing a corporate trustee
Appointing the right trustees is crucial for families to protect the trust beneficiaries and maximise the benefits to them.
This applies in all contexts in which a trust is used, but is particularly relevant when the trust is set up for your family or other people close to you.
Often, the trustees chosen will be the person setting up the trust, a family member or a trusted friend.
However, a further option that we frequently advise is to choose a professional such as a trusted financial institution or solicitor.
Examples of where private individuals and families use corporate trustees are:
Wrigleys Trustees Limited
In order to provide this service to our clients, Wrigleys has incorporated its own specialist UK registered trust corporation called Wrigleys Trustees Limited.
Further details are available here.
Below we explain 3 areas where Wrigleys Trustees Limited acts for families:
When somebody lacks the “capacity” to deal with their own affairs and has not appointed an attorney, the Court of Protection will appoint a deputy.
In cases involving significant awards for personal injury the Court will expect to see a professional deputy rather than a family member. Wrigleys own corporate trustee, Wrigleys Trustees Limited is regularly appointed by the Court of Protection to act as deputy for clients. Some of those clients have major injuries but in other cases there is nobody in the family or support network able to act. Sometimes an attorney or deputy has been in place but they have mismanaged funds.
By appointing Wrigleys Trustees Limited, the burden on family and friends can be relieved.
We have wide experience of the issues that might arise and so even if it is new to the family, we are likely to have seen the situation before and dealt with it successfully.
In injury cases, the cost of a professional deputyship can be claimed from the defendant if a deputy is needed as a result of the injury.
Wrigleys Trustees Limited is happy to be appointed as attorney for property and affairs for clients who either have no suitable relative or friend to act or who are concerned about conflicts of interest.
We act for a number of people who need this sort of help. Sometimes they have no family members who can help them. Sometimes they want to leave their money to family members when they die but are concerned that their money should be spent on the best care for them in their lifetime even if that means their estate is reduced.
If the people making decisions about their care are the same people who will inherit the estate at the end of the day, people are sometimes not confident that their best interests will really be looked after.
An independent professional trustee has no such conflict of interest.
A professional executor in your Will can be of great benefit. Wrigleys Trustees Limited have significant experience of acting as executors and are able to make sure that your estate is dealt with correctly, with funds going to the right people and with no nasty surprises.
People often make Wills well in advance of their death, which we of course encourage, but are concerned that an individual that have appointed as an executor might not still be working by the time they die, or might even have died before them. By appointing Wrigleys Trustees Limited you can have the comfort of a professional executor and the reassurance they will still be around when you and your family need them.
Key benefits of corporate trustees
Also known as a professional trustee, the benefits of appointing a corporate trustee include:
- Assistance with difficult or controversial decision-making.
- Assistance with trustee processes and regulatory requirements (such as the obligations under the Foreign Accounts Tax Compliance Act “FATCA”).
- Reduced burden on family trustees.
- Mitigating the risk and consequences of any conflict of interest.
- Continuity of decision making by avoiding any disruption caused by the absence or retirement of an individual partner.
|If you would like to discuss any aspect of this article further, please contact Sue Greaves or Lynne Bradey on 0114 267 5588.The information in this article is necessarily of a general nature. Specific advice should be sought for specific situations. If you have any queries or need any legal advice please feel free to contact Wrigleys Solicitors