A Publication of WTVP

Many individuals who've established or are the beneficiaries of a trust often believe their trust can't be transferred from one institution to another. In fact, while certain elements of a trust may not be changed, the person or institution named to act as trustee usually isn't one of them. A trustee holds fiduciary responsibility to manage and administer a trust under the terms of the trust document, in a manner most advantageous to the beneficiaries of the trust. In most cases, a trustee can be changed.

Why Change Trustees?

An individual may wish to transfer his or her trust to a new trustee for a variety of reasons. One reason may be that once-familiar trustees-and the services they provide-have been replaced due to recent mergers in the banking industry, the traditional providers of personal trust services. Other reasons may include dissatisfaction with the current corporate trustee, lack of investment choices, poor performance from the trust's current investments, high or increasing fees, statements that are difficult to interpret, and the wish to have a financial advisor oversee all financial investments, including the trust account.

Still another reason a grantor (trust owner) may wish to transfer his or her trust is recent estate tax law changes that will continue to change throughout the next several years. A grantor who'd named a friend or family member as trustee may find the changing estate tax laws too complex, and a more experienced trustee may be required.

Your Trust May Be More Flexible Than You Think

Most revocable and irrevocable living trusts allow you to change trustees. If you're a grantor or beneficiary who's seeking a new administrator for your trust, you may wish to consider an experienced professional trustee. A full-service professional is able to provide experienced trust officers to work closely with you and your attorney or tax advisor. IBI