When creating a trust through our platform you can elect to have either one corporate trustee or three individual trustees. These are some of the advantages of trust management by a corporate trustee:
- Companies don't die. Difficulties can arise when an individual trustee passes away and an appointer/the court must assign a new trustee. Having a corporate trustee avoids the fuss.
- Legal ownership of trust property does not have to be amended upon the change of directors and shareholders, as it is in the company name. If an individual trustee changes, legal title must also be transferred.
- The trustee's liabilities are limited - confined only to the company's assets.
- Can often be more tax effective.
- Can be easier to keep trust property separate (especially money) as it is held by the company, perhaps in the company's bank accounts.
- Companies are often created for the sole purpose of acting as a corporate trustee - less chance of duties becoming mixed
N.B. The trust is not a legal entity, therefore it is the trustee that can sue and be sued with regard to matters connected to the trust. If there is a corporate trustee only the company is liable not the individual directors or shareholders (separate individual assets remain protected).