If you are opening a trust or currently have a trust you might consider hiring a trust management to help care for the trust and it's assets. If you are new to this you might be worried about hiring a management company, however there is nothing to be worried about. Here are some things you need to know about trust management.
Will A Trust Management Company Have Access To The Assets?
One of the major reasons that people are worried about hiring a trust management company is that they are worried about the management company having some sort of legal claim over the assets in the trust. Luckily, this is not the case. The management company has a legal obligation to distribute the assets fairly, legally and according to the terms of the trust, but they do not actually have any claim to the assets. You will pay the trust company and you can either pay them out of pocket, or you can use some of the money or equity in the trust to pay them. So they are entitled to payment, but they cannot use the assets of the trust or anything of the sort. The money and assets go directly to the beneficiaries of the trust.
Why Hire A Trust Management Company?
One of the main reasons to hire a trust management company is to make sure that the trust is being dealt with fairly and legally. In some cases, the party that created the trust will appoint a family member or trusted friend to care for the trust and manage it. However, in some situations this is not ideal. If you believe that it might create family problems to have one person managing it, or if you aren't sure that the terms of the trust will be honored, you should hire a 3rd party. The trust management company is a non-biased party. They are not emotionally involved in the situation so they are more likely to be fair and to simply distribute the assets based on the terms of the trust.
How Do I Hire A Trust Management Company?
Many people go through their attorney or financial planner to find a trust management company. An attorney will help to organize and create the trust and define the terms of the trust, then the management company will simply execute the terms that you have created.
By understanding these things you can determine if hiring a trust management company is right for you.
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