How Many Trustees Do You Need?
In her July 12, 2007 article, How Many Trustees Do You Need?, Wall Street Journal writing Rachel Emma Silverman discusses the increasing complexities of modern trusts, among which she notes advantages and disadvantages of having multiples trustees.
Here are some of the ways that she notes trusts are growing in complexity:
• More families are using trusts with teams of multiple trustees or advisers, and some trustees are delegating specific trust assets to outside investment managers.• Some trusts enlist “trust protectors,” who generally have the power to fire and hire trustees.• Using multiple trustees or advisers may lead to higher fees, state income-tax consequences and legal questions about who is ultimately responsible.