The benefits of having a Professional Trustee

The benefits of having a Professional Trustee

Trusts are created for many reasons. Such reasons include ensuring loved ones have future financial support; they may be too young to manage their own finances or cannot look after their affairs.

A trust involves three main parties. The settlor, the person who puts the money or assets into the trust. The beneficiary, the person receiving the benefits from the trust, and the trustee, who is responsible for managing the trust.

When choosing a trustee, many people select family or friends, as they are someone they trust. However, this can be problematic as emotions may run high. The position of a trustee comes with many responsibilities, a lot of which are incredibly intimidating. The family or friend may not be entirely impartial to the situation, despite having the beneficiary’s best interests at heart and technical areas such as tax, creditors, and marital disputes may not be fully understood.

A Professional Trustee is for the best. Firstly, they resolve conflicts of interest. If several trustees are family and friends, they may all have opposing views of what is best for the beneficiary. Alternatively, if a trustee feels their job conflicts with the trust itself, they may not want to be involved.

A Professional Trustee, especially an experienced one, would also have the knowledge needed to act in that position. An experienced Professional Trustee will have been exposed to multiple scenarios when managing a trust, therefore having the capability to advise on various situations. In addition, they will have a wealth of professional resources and skills related to that field. It would also reduce the possibility of hiring a lawyer, solicitor or external advisor, which could be expensive.

They will also understand the legal jargon, much of which will probably not be familiar to a trustee who is a friend or member of the family. The Professional Trustee will understand tax liabilities, how to avoid heavy taxation maximising the assets on behalf of beneficiaries for a nominal cost.

Join our Superhero Webinar to understand why a professional trustee is needed and explore case studies and real-life scenarios alongside a Q&A session.

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This article was submitted to be published by CTT Group as part of their advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.

CTT Group

CTT Group is an established Legal Services firm providing multi-disciplinary support for the UK’s Professional Adviser community. Their expertise spans multiple areas of Law, Estate Planning, Finance and Tax matters. CTT Group is recognised as a leading figure in the industry due to their wealth of experience and technical knowledge in the legal and financial sectors.

CTT Group is made up of six areas:

CTT Tax and Trust: a premium support system for the Professional Adviser community, providing professional executor and Trustee services. They specialise in Estate Planning, Tax and Trust matters and have a wealth of knowledge and experience in delivering the right solutions for your clients.
CTT Accountancy: A newly established Accountancy firm that will work in partnership with you and your business. CTT Accountancy is a practice of highly skilled and experienced accountants with expertise in trust matters, uniquely positioned to offer your clients a range of accounting services, whatever their needs.
CTT Legal: Providing innovative and modern solutions to even the most complex legal problems. CTT Legal offer comprehensive Legal advice alongside CTT Law; an SRA-regulated law firm and strategic partner of CTT Group.
CTT Private Client: Offering individual professional advice to high-net-worth individuals with various financial situations. Their specialist team have a wealth of knowledge and will work with you to understand your requirements and provide bespoke advice.
CTT Legacy Software: Ground-breaking legal software that will change how you work. Legacy was explicitly designed with you and your business in mind, so it will seamlessly align with your needs. It can also be tailored to suit your business needs, giving you complete control over your client journey.
CTT Professional Services: A specialised knowledge hub designed for the Professional Adviser community and CTT Group members. The Professional Services team will provide you with a bespoke training and support package to suit any business.
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Contact: CTT Group Tel: 01926 514 390 Email: [email protected] Address: CTT Group, Gales House 62 Kenilworth road Leamington Spa CV32 6JX