Should I appoint a trust company as my power of attorney for property or estate trustee (executor)? 

trust company as power of attorney

Disclaimer: This article discusses Estate Planning.  It is intended for the purposes of providing information only and is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.

We have discussed the importance of choosing the right power of attorney (POA) or estate trustee to act on your behalf if you cannot do so or manage your estate if you pass away. These roles come with many duties and responsibilities. 

In some cases, you may choose a close relative or friend. However, in other cases, it may make more sense to consider appointing a trust company.

A trust company is a professional organization responsible for managing the administration of estates, trusts, and other fiduciary responsibilities. Appointing a trust company as your power of attorney for property or estate trustee (executor) has both advantages and disadvantages that are important to consider.

Note: a power of attorney for personal care is also an essential part of your estate plan. However, in most instances, a professional trust company will not be appointed for these decisions.

Personal care decisions typically involve intimate and sensitive choices about health care, living arrangements, and other personal matters. These choices are best made by someone who knows you well and understands your individual wishes and values. This article will focus on a trust company’s role in managing your finances and property and estate matters.

Reasons to consider appointing a trust company as your power of attorney or as your estate trustee

Below are some reasons you may choose a professional as your estate trustee or power of attorney. 

You need someone local to make decisions on your behalf. 

Having someone local manage your affairs can be incredibly beneficial. A local company has the advantage of being physically present and easily accessible, allowing for timely decisions and actions. A local power of attorney can attend to financial matters that require in-person attention, such as money or property management, and can address any immediate issues that arise with your assets or estate.

They are also well-versed in your area’s specific laws, regulations, and market conditions. This knowledge can be crucial for effective estate and property management, ensuring that all actions comply with local legal requirements and are optimized for local economic conditions.

Trust companies often have established relationships with local professionals, such as real estate agents, lawyers, and accountants. These connections can streamline processes and make the estate administration run more smoothly. 

Your finances are complex and require greater expertise.

A trust company’s professional expertise is invaluable if your financial situation is complex, involving multiple investment accounts, real estate holdings, business interests, or other sophisticated financial instruments. Additionally, complex estates often involve intricate tax considerations. Trust companies have tax and investment experts who can develop strategies to minimize tax liabilities, ensuring that more of your estate is preserved for your beneficiaries.

Trust companies bring specialized knowledge in trust law, estate planning, and fiduciary responsibilities. This expertise helps execute sophisticated techniques, such as establishing and managing various types of trusts, handling charitable donations, and ensuring compliance with legal obligations.

You want to appoint someone who will be neutral and impartial. 

A trust company serves as a neutral third party, which is essential in situations where impartiality is required or where there may be conflicts among beneficiaries. Unlike family members or friends, a trust company does not have a personal relationship with any parties or emotional involvement in the decisions being made. 

Building your estate plan with Beeksma Law

Working with professionals as your power of attorney or as your estate trustee (executor) is a significant step in ensuring that your financial affairs and property are managed effectively and impartially. 

For tailored legal advice, establishing an enduring power of attorney, or any other estate planning needs, it’s crucial to consult with experienced estate law lawyers. At Beeksma Law, our team focuses on estate planning and can guide you through every aspect of creating a comprehensive estate plan. Whether you need assistance drafting a will, selecting a power of attorney, or appointing an executor, we are here to help.

Contact us today to learn more about how we can assist you with your estate planning needs. We are ready to provide the guidance and support you need to protect your legacy.

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