DGAA bLAWg

5 Benefits to Using an Institutional Trustee

Web Admin - Tuesday, April 08, 2014

illinois trusts and estate planning attorneyTrusts are versatile, useful legal instruments that allow the grantor (the person who sets up the trust) to set aside certain money or other assets for the use of another person (the beneficiary). However, the beneficiary does not have direct access to the assets. Instead, the trust is managed by a trustee whose job it is to control the assets and use them in the beneficiary’s best interest. This makes choosing the trustee one of the most important parts of setting up a trust.

Although most individuals can serve as a trustee, Illinois law also allows for the use of an “institutional trustee.” Institutional trustees are companies, often banks, who professionally manage the trust’s assets. These companies usually do charge a fee for the services, but the companies come with several benefits:

  • - They are skilled at managing trusts;
  • - They have the ability to handle complex paperwork and recordkeeping;
  • - They provide continuity to the management of the trust;
  • - They operate free of bias; and
  • - They are regulated to prevent fraud.

Reasons to Use an Institutional Trustee

  1. 1. Experienced Administrators: Institutional trustees have experience managing trusts. This allows them to easily navigate the legal requirements for trustees. Furthermore, many trustees are responsible for investing the trust’s assets. Banks and other institutional trustees are often professional investors who will be able to handle the task better than friends or family.

  1. 2. Strong Recordkeeping: Trusts also have fairly extensive recordkeeping requirements to prevent fraud on the part of the trustee. Institutional trustees have the infrastructure in place to make sure that important documents, like tax returns, are filed on time and do not get misplaced. Furthermore, the use of an institutional trustee prevents this complex work from being pushed onto a friend or family member.

  1. 3. Management Continuity: The corporate nature of institutional trustees also allows for continuity in the trust’s management. Trusts can last for decades and decades. An individual trustee may not be physically or mentally capable of managing a trust for its entire duration. Conversely, institutional trustees have the ability to smoothly transfer trust administration from one employee to the next, allowing for steady management of the assets.

  1. 4. Unbiased Distribution: Additionally, institutional trustees can eliminate the possibility of bias that might exist with trustees who are friends or family. The company would not have any prior history with particular beneficiaries that might interfere with the fair and evenhanded use of the trust’s assets.

  1. 5. Fraud Protection: Finally, institutional trustees have fraud prevention mechanisms in place. Although everyone would like to think that their friends or family members are above reproach, cases of theft on the part of the trustee do happen. Many institutional trustees are subject to government regulation and auditing requirements that can reduce the risk of fraud on their parts.

If you are interested in setting up a trust, consult with an Illinois estate planning lawyer to tailor one to your specific situation. Our attorneys lend their experience to clients across the northwest suburban area, including in Long Grove, Riverwoods, and Kenilworth.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Recent Posts


Tags

Class A misdemeanor BUI Crystal Lake insurance lawyer Arlington Heights TBI attorney cell phone accidents pedestrian accidents insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys defective products real estate attorney Des Plaines living trust vs will Federal Food Drug and Cosmetic Act underinsured motorist pizza emoji Des Plaines claims law firm Arlington Heights wills and trusts lawyers Illinois personal injury lawyer Illinois estate planning Rolling Meadows personal injury attorney trucking accidents gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys bicycle accidents texting and driving Inverness personal injury attorney uninsured motorist denied insurance claim distracted driving accident victims personal injury accidents Schaumburg personal injury lawyers dog bites employment lawyer Thanksgiving minimum wage Schaumburg wrongful death attorney Crystal Lake medical malpractice lawyer Forcible Entry Chicago estate planning lawyer golf accidents Crystal Lake civil litigation lawyer license reinstatement Illinois business lawyer installment contracts unfunded trust residential real estate jet ski traumatic brain injuries right to work Rolling Meadows litigation lawyer Long Grove real estate lawyer Illinois workplace lawyer Rolling Meadows marijuana attorney trusts car crash Rolling Meadows DUI lawyer Riverwoods estate planning lawyer slip and fall job lawyers commercial real estate Barrington Illinois estate planning lawyer Illinois probate lawyer healthcare blended families hiring employees mass shooting college kids LLCs Arlington Heights pedestrian accidents marijuana crimes attorney Des Plaines drug lawyer Arlington Heights car accident lawyer Illinois registered agent insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys DMV Palatine trusts lawyer traffic deaths Barrington personal injury attorney Des Plaines personal injury lawyers Illinois insurance attorney Des Plaines medical malpractice attorney real estate attorneys FSLA condo association Illinois medical malpractice lawyers Des Plaines civil attorney motorcycle accident Palatine real estate lawyer car collision TBI Rolling Meadows insurance lawyer Illinois employee rights attorney. civil litigation attorney Arlington Heights criminal lawyer medical malpractice compensation Barrington Traffic Lawyer Inverness real estate lawyer whistleblower protections real estate lawyer pet bites Rolling Meadows Whistleblower Claims Illinois real estate lawyer Palatine punch death Barrington employment attorney low-ball insurance settlement insurance agent negligence Schaumburg car accident attorney Palatine traffic lawyer Crystal Lake bike accident lawyer personal injury claim Palatine traffic accidents boating accidents Liquor Control Act guardianship attorney Rolling Meadows insurance dispute lawyers car accident lawyer Des Plaines criminal attorney Des Plaines drug crimes lawyer Des Plaines injury law firm Rolling Meadows corporate lawyer FMLA insurance claim dispute attorney murder defense Illinois insurance disputes commercial leasing contracts Illinois lawyer insurance attorney Deer Park real estate law firm expungement Palatine criminal defense lawyer controlled substance estate planning civil litigation Deer Park employment law attorney employee discrimination overtime pay holiday statistics Illinois corporate lawyer Rolling Meadows estate planning attorney dynasty trusts Kenilworth estate planning lawyer Barrington boating accident attorney Palatine workers compensation lawyer Illinois trusts attorney estate planning for college students Crystal Lake personal injury lawyer personal injury claims loopholes Do Not Resuscitate fault based insurance healthcare claims criminal record Arlington Heights employment attorney personal injury lawyer rollover accidents insurance claims Long Grove estate planning attorney automated cars Barrington criminal defense lawyer Buffalo Grove criminal defense lawyer Illinois job attorney small business GM ignition switches estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Palatine construction attorney Illinois rollover accident lawyers digital evidence fiduciary rule Legal Info Illinois employment lawyer Arlington Heights tax lawyer DUI defense Inverness civil lawyer trucking accident lawyers South Barrington real estate lawyer comparative negligence Palatine injury attorney Inverness corporate attorney Rolling Meadows traffic law firm Illinois speeding lawyer Schaumburg employment attorney Des Plaines accident attorney Long Grove estate planning Illinois insurance claim dispute lawyer Illinois LLC creation suspended license Crystal Lake medical malpractice law firm traffic violations Palatine employment lawyer estate attorney Arlington Heights traffic attorney Fourth of July digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers attorney fees Palatine probate lawyer overtime violations medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers sexual images Inverness insurance attorney Illinois criminal defense attorney insurance claim denial Crystal lake insurance dispute attorney insurance claim delay insurance negligence Inverness DUI lawyer Palatine personal injury lawyer new real estate form Illinois attorney Rolling Meadows drug defense attorney Buffalo Grove employment lawyer liens Rolling Meadows accident lawyer real estate zoning problem employees loss of consortium Illinois traffic attorneys Buffalo Grove law firm Illinois Sales Representative Act Illinois real estate medical malpractice Illinois injury lawyer estate planning lawyer Crystal Lake business law attorneys Long Grove real estate attorney Chicago biking tips Illinois DUI attorney life insurance lawyer Crystal Lake tax lawyer Barrington drug crime attorney fiduciary rule delay civil rights violation Illinois traffic attorney workers comp Palatine drug lawyer Illinois car accident attorney probate Rolling Meadows traffic attorney breathalyzer test crossover accidents special needs trust Barrington injury attorney Landlord Tenant Ordinance Palatine corporate attorney irrevocable trust dealing with problem employees product liability employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Illinois wills and trusts attorneys School Visitation Rights Act Schaumburg Attorney Buffalo Grove traffic attorney traumatic brain injury Arlington Heights Attorney manufacturing Des Plaines pet law attorney car accidents truck collisions Crystal Lake traffic lawyer Illinois employment law attorneys rest breaks Des Plaines DUI attorney Mount Prospect real estate lawyer Palatine corporate law attorneys Illinois employment law attorney pain and suffering Illinois red light cameras Illinois defective products attorney Schaumburg criminal law attorney home inspection lawyer license suspension Barrington civil litigation attorney Retaliatory Discharge probate fees Arlington Heights medical malpractice lawyer Rolling Meadows Traffic Lawyer Deer Park motorcycle accident lawyer speeding probate claims process real estate contract field sobriety test health insurance dispute Chicago insurance claim attorneys icy parking lots Arlington Heights employment law attorneys eluding a police officer Rolling Meadows personal injury lawyers digital information Schaumburg personal injury attorney Exclusions advance healthcare directive motorcycle accident lawyer Illinois elder law attorney workers compensation wage theft living wills Illinois traffic accident lawyer foreclosure Arlington Heights personal injury lawyer Colin Gilbert Illinois insurance claims lawyers Des Plaines real estate lawyer Illinois Trust Code independent contractor Food and Drug Administration's Food Safety Modernization Act Chicago trucking accident attorney Illinois medical malpractice case DUI penalities insurance adjusters Kenilworth estate planning attorney estate planning attorney Inverness traffic law firm child safety car crashes Chicago car accident lawyer Arlington Heights wills and trusts lawyer Illinois Probate Act of 1975 Schaumburg premises liability blood alcohol content Buffalo Grove medical malpractice lawyers Attorney Ken Apicella wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Palatine civil litigation lawyer Buffalo Grove real estate attorney vacation home Buffalo Grove personal injury attorney Joliet general practice lawyers Schaumburg personal injury lawyer employment attorney deed transfer Barrington business law firm South Barrington real estate attorney preventing accidents Rolling Meadows insurance attorney revenge porn Schaumburg insurance lawyers Des Plaines insurance attorney Illinois Wage Payment and Collection Act food poisoning insurance agents Schaumburg estate planning attorney preventable medical errors changes to mortgage law Des Plaines Traffic Lawyer Deer Park traffic accident attorney traffic accidents Des Plaines personal injury lawyer corporate law Palatine employment law lawyer Arlington Heights lawyer Inverness injury lawyer real estate cell phone Illinois will lawyer real estate leasing surgical mistakes denied insurance claims Family Medical Leave Act life insurance claims federal regulations for LLCs boating under the influence Barrington estate planning lawyer tax attorney senior citizens Self-Directed IRA Accounts liability claims rent to own real estate contracts Palatine law firm trauma after an accident boating DUI Illinois personal injury lawyers Inverness estate planning lawyer Rolling Meadows employment attorney Affordable Care Act pedestrian injuries, pedestrian fatality Illinois Workers’ Compensation Commission Deer Park medical malpractice attorney Rolling Meadows business lawyer criminal Schaumburg construction accident lawyer insurance claim dispute Illinois insurance lawyer Rolling Meadows insurance dispute lawyers, insurance dispute privacy laws Long Grove wills and trusts attorneys medical research IRS rumble strips car accident lawyers Illinois tax attorney taxes Illinois medical malpractice claim coronavirus unpaid overtime Illinois boating accident lawyer Arlington Heights car crash attorneys homestead rights drug possession distracted driving accidents Rolling Meadows criminal attorney breach of contract caregiver income distribution deducation Crystal Lake employment lawyer Mount Prospect wills and trusts lawyers Illinois medical malpractice attorney Inverness real estate attorney Schaumburg civil litigation attorney Palatine Attorney privacy DGAA deadly crashes landlord wrongful death wrongful termination Illinois personal injury attorney investment property Illinois workers compensation attorney workplace sexual harassment IRA trust transfer agent Illinois employment laws involuntary manslaughter Schaumburg injury lawyer personal injury attorney back injuries Schaumburg estate attorney sexual harassment BAC modern family estate planning natural gas explosion life insurance policy Illinois home inspection insurance denials digital media accounts, estate planning, Arlington Heights estate planning attorney, Palatine employment attorney denial of life insurance Chicago lawyer Rolling Meadows tax attorney Crystal Lake criminal defense attorney Inverness accident lawyer Illinois employment law Illinois estate planning law firm Barrington litigation attorney Kenilworth estate planning attorneys Crystal Lake accident attorney Rolling Meadows medical malpractice lawyers Buffalo Grove car accident lawyer spinal cord injuries Illinois motorcycle accident lawyer Illinois living will foreclosed rental property natural gas PTSD severance agreements Super Mario trustee construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation social media after death elder law Illinois comp time Illinois employment law firm institutional trustee traffic tickets Chicago insurance law firm in terrorem provision insurance disputes subcontractor Home Sale Contingencies Transfer on Death Instrument Barrington real estate lawyer Illinois insurance claim dispute lawyers reckless homicide estate planning trusts Buffalo Grove personal injury lawyer internet Illinois Transfer on Death Instrument Buffalo Grove injury lawyer Inverness elder law lawyer Rolling Meadows Attorney business litigation Deer Park traffic lawyer Arlington Heights accident attorney POA insurance claim probate lawyer consent to a search Illinois pet lawyer gift taxes murder charges driving Barrington criminal lawyer hit and run accident Rolling Meadows personal injury lawyer Illinois workplace discrimination attorney traffic violations defense forming a corporation in Illinois employee rights Barrington employment law attorney Arlington Heights Traffic Lawyer meal breaks ken apicella DUI murder insurance dispute attorney mortgage owner responsibility employees Crystal Lake traffic attorney traffic offenses living trust drug crimes lawyer Deer Park workers compensation lawyer Illinois law capital gains tax operating agreements wills and trusts criminal law paid sick leave Crystal Lake pedestrian accident lawyer dram shop law Mount Prospect elder law attorney Barrington estate planning attorney Schaumburg real estate lawyer Rolling Meadows employment law attorneys Chicago employment attorney Chicago will attorney Crystal Lake law firm Des Plaines tax law firm Illinois mortgages drunk driving statistics Arlington Heights insurance attorney Home Remodeling Repair Act employment law, Illinois employment laws wills Rolling Meadows real estate attorney pregnant women underage DUI appealing an insurance claim Illinois wrongful termination lawyer cell phone tower data Illinois insurance claim attorney texting while driving Crystal Lake employment attorney clemency trench injuries Schaumburg elder law lawyer financial advisors creditors work unions insurance denial appeals Illinois bicycle safety Illinois business law atorneys Buffalo Grove traffic lawyers Crystal Lake injury attorney Illinois construction accident attorney Illinois insurance dispute lawyers Arlington Heights estate planning attorney unpaid assessment Des Plaines motorcycle accident attorney Schaumburg medical malpractice lawyer car crash injuries brain injury Illinois trucking safety drug crimes unauthorized overtime Illinois jet ski accident lawyer personal injury no contest clauses Deer Park DUI lawyer fatal car accidents Mt Prospect Attorney spinal cord injury llinois Real Estate Lawyers Association Illinois estate planning attorney Barrington medical malpractice lawyers hands free device Chicago estate planning Chicago employment lawyer caretaker rights Detainer Actions criminal defense Schaumburg probate attorney Illinois employment attorneys Policy Cancellation Deer Park accident attorney Palatine estate planning lawyer probate process Illinois traffic laws Crystal Lake medical malpractice attorneys traffic crimes car accident Employment Discrimination Law condo bicycle dooring accidents first degree murder Illinois pedestrian accident attorney BAIID traffic laws Illinois wills and trusts Arlington Heights wills and trusts attorneys Illinois personal injury Illinois workers compensation lawyer Crystal Lake car accident lawyer IRELA Illinois small business bad faith insurance claims Chicago traffic lawyer Palatine civil attorney pet law Des Plaines collections attorney drugs Schaumburg criminal attorney Schaumburg corporate attorney defective products lawyer Crystal Lake estate planning lawyer Inverness probate lawyer Rolling Meadows car accident lawyers federal crimes slip and fall accidents Illinois collections attorney landlord tenant law underfunded trust license revocation accidental death benefits medical marijuana products liability Palatine elder law attorney Illinois civil litigation lawyer jet ski accidents real estate closing Crystal Lake will lawyer estate plan Chicago attorney Schaumburg estate planning lawyer drug crime license Buffalo Grove probate lawyer Rolling Meadows probate lawyer Fair Labor Standards Act Barrington attorney auto accidents Barrington workers compensation attorney Illinois driving without license personal injury law firm estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers power of attorney for healthcare drunk driving Illinois traffic ticket lawyer Crystal Lake personal injury attorney Rolling Meadows criminal lawyer swimming pools marijuana Crystal Lake pet attorney trust payments Illinois Smoke Detector Act construction accidents DUI attorney IRA benefits Barrington personal injury lawyer Deer Park personal injury lawyer sole proprietorship CAM Schaumburg traffic lawyer Chicago will attorney, social media platforms, Illinois estate planning lawyer, Palatine insurance lawyer employment contract Long Grove estate planning attorneys compensatory time insurance claim denials Rolling Meadows boating crash lawyer Palatine business attorney employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Arlington Heights injury attorney head on collisions employee misclassification Buffalo Grove insurance claim dispute lawyers Chicago corporate attorney Arlington Heights wills and trusts attorney bike accident power of attorney rollover car crashes Barrington employment law firm life insurance liability workers compensation benefits Arlington Heights personal injury attorney Schaumburg employment law attorneys construction contracts pedestrian-automobile accident Buffalo Grove corporate attorney Crystal Lake employment law attorney living trust benefits pedestrian accident anesthesia errors DNR ObamaCare startup company Illinois Human Rights Act nursing home negligence Arlington Heights trucking lawyer Crystal Lake car accident attorney probate claims digital assets Colin H. Gilbert vacation home fines Schaumburg drug defense lawyer filing a medical malpractice claim medical malpractice claims ACA Jay Andrew insurance dispute Des Plaines personal injury attorney Arlington Heights real estate lawyer estate tax Rolling Meadows employment law attorney Des Plaines real estate attorney disability benefits medication errors elder abuse employment law Deer Park criminal attorney commercial leases pay when paid contract

Archive