Only a small percentage of investors currently use an institution as a trustee of their trusts. In fact, Spectrem research indicates only 14 percent of households with $5 million to $25 million in net worth use a corporate trustee, despite the fact that 49 percent currently hold assets in a trust. Why are these investors not using a corporate trustee? What would make them change their mind? As for those investors using a corporate trustee, what factors influenced them to choose a particular organization.
Choosing a Trustee is a qualitative study with 49 investors who currently have a trust. Half of the investors surveyed have a corporate trustee while the remaining investors are not using a corporate trustee. This report explores the following issues:
- What was the process for putting assets into trust? Who advised them to set up the trust?
- What is the structure of the estate plan?
- Who is the trustee of their trust(s)? How did they make this decision? What factors were important to them? Ease? Fees? Ensuring that their family is cared for?
- For those who do not have a corporate trustee, what made them decide not to use a corporate trustee? What events might make them change their mind?
- For those who do have a corporate trustee, why did they choose a specific organization? What might make them change their mind? How is their relationship with their current trustee? Does it meet their expectations? Why or why not?