The past fifty years have witnessed a blossoming evolution in the use and character of trusts. This dynamic shift has spurred growth in the industry while simultaneously presenting issues with profitability and stability. Beginning in the mid-1980s, a number of states started enacting favorable trust laws to entice trust assets into their jurisdictions. Through this developmental period, a number of intricate trust vehicles became popularized by settlors’ efforts to avoid taxes and creditors. Along with these increasingly complex trust structures came a need for increasingly sophisticated trustees. A settlor’s choice of a bargain-priced trustee can lead to unwanted results. Advisors who counsel families about these types of decisions and who know the cost of choosing an incompetent trustee can help clients find the best fit for their particular situation.
See Jeffrey C. Wolken, A Brave New World for the Trust Industry, Wealth Management, October 3, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
