Should you use a trust company as your executor?

Having worked in a leading trust company for 7 years, I am pretty well versed on how a trust company can help when named as executor and trustee of an estate. I am definitely a fan of using a trust company in the right circumstances.

In any discussion about using a trust company, the first question most people ask is about the cost.

The reality of the situation is that a trust company does not and cannot charge more for its executor services than any other executor would charge. They never go over 5%. Don't forget that a trust company is an office full of experienced trust officers and investment professionals who have been through the estate scenario dozens, if not hundreds, of times. Your brother-in-law or aunt or kids can charge the same amount in executor fees even though they have no experience at it.

I came across a very good article at www.investmentexecutive.com that talks about naming a trust company (also known as a corporate trustee) to handle your estate. It's definitely worth a read if you're thinking about using a trust company. Click here to read it.