Sometimes our gut instinct is to use a friend or family member as Trustee because we think they might better-understand any strange family dynamics. But the truth is, especially if you have a complicated family, using an impartial outside person might be very beneficial, as they’re one-step removed from any drama.

While it’s true that any Trustee is bound by a fiduciary duty, a Professional Trustee has the greatest degree of legal responsibility and accountability, as it’s literally their job.

Of course you'll have faith in the Trustee you appoint. But keep in mind, someone you have a personal relationship with doesn't need to succumb to the regular compliance audits to demonstrate their competency. A Professional Trustee from a dedicated Trustee Company would have to do exactly that.

This may seem counterintuitive. On the surface, it feels appropriate to assume a Trust company would charge more than any compensation a friend or family member who’s acting as Trustee would earn. But in reality, Professional Trustees are generally pretty good at their job - they know the process and they’re often quite efficient.

They usually don’t need other professional services like an accountant, attorney or anyone else to support them (all of which would need to be paid for out of the Trust). In the end, it’s actually not all that uncommon for a Professional Trustee to cost you less.