People frequently ask whether or not they should use a professional trustee organisation to be either the executor for their estate or the trustee for any testamentary trusts established under their wills.
This includes the government run public trustee body in each State in Australia.
Appointing professional trustee organisations can have its place, for example, where there are no appropriate alternatives in a person’s network. They can also be valuable as acting independently and can act for structures that may be intergenerational (i.e. will outlive an individual appointment).
However, there are some considerations with appointing such organisations.
The organisation will charge fees for acting in their capacity (as opposed to a family member/friend). The fees may also be calculated as a % of the total estate.
As an organisation, it can be harder for a beneficiary to communicate directly with those working on the estate/trust. This can often exacerbate the disconnect between the decisions that are being made and what is happening ‘on the ground’ for the beneficiaries. An organisation that has no relationship with the beneficiaries cannot easily determine what may be needed to support beneficiaries in what can be a very difficult time for them.
Because of liability issues, many organisations have to do what is ‘legally right’ when what is practically more appropriate might be in better alignment with what the person would have done if they were alive and still had capacity.
While the decision about who to appoint in these specific roles should be made carefully after specific advice, it is always important for people to consider their own network first in determining who might be a viable alternative to using a professional trustee organisation.
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Information provided in our blogs and on this website is general in nature and does not constitute legal advice. While efforts are made to ensure that the information provided is accurate, information may become outdated as legislation and new government announcements are made, or case law develops. Individuals must not rely on this information to make a financial, investment or legal decision as it does not take into account their personal circumstances. We recommend you consult a legal practitioner before taking any steps to take into account your particular objectives, circumstances and individual needs.