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Citi Trust

Advantages of a Professional Trustee

Selecting a Trustee

Choosing who will serve as trustee of your personal trust is an important decision that deserves careful consideration. The trustee you select must have the skill, perspective and judgment, as well as the time, to adequately perform a wide range of duties. Since the trustee is responsible for carrying out the terms of your trust, you should have implicit faith in whomever you choose.

Individual or Institution?

You can appoint an individual or institution to serve as trustee. Some people choose a family member or friend. While this may be appropriate for certain simple trust arrangements, it is not always the best choice. Not every individual can fulfill the duties and responsibilities of a trustee. They may not be experienced enough or have the time to perform these duties effectively. If they are personally involved in the trust as a beneficiary, their objectivity may be compromised.

Advantages of a Professional Trustee

A professional trustee can offer continuity, permanence, professionalism and investment expertise. Choosing a professional trustee also may help avoid the biases that may result when you select a family member. If you want to combine professional oversight and family involvement, you can appoint a trust company to act in conjunction with a relative or a friend.

Trustee Responsibilities

When choosing a trustee, consider the general duties that accompany this appointment:

  • Investment management oversight
  • Periodic distribution of income or principal as outlined in the trust document
  • Preparation of trust tax returns
  • Termination of trust and distribution of trust assets as specified in the trust document
  • Collecting and distributing income from trust assets
  • Safekeeping of assets
  • Bill paying

To find out what our high quality service and professional investment management could mean to your future, call your advisor.

"Citi Trust" is the business name for a wide range of personal trust and estate management, and related services provided by Citigroup Inc. or its affiliates to individuals, families and charitable entities throughout the world. For U.S. clients, trust services are provided by one of the following entities: Citibank, N.A.; Citicorp Trust, N.A.; Citicorp Trust South Dakota; or Citigroup Trust - Delaware, N.A. The service providers are referred to collectively as "Citi Trust." Neither Citigroup nor any of its affiliates provides tax or legal advice. Citi and Citi with Arc Design are trademarks and service marks of Citigroup Inc. and its affiliates, and are used and registered throughout the world.

Citigroup, Inc. and its affiliates do not provide tax or legal advice. You should seek advice based on your particular circumstances from an independent tax advisor. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Investment Products: NOT FDIC INSURED . NO BANK GUARANTEE . MAY LOSE VALUE

For more information, please contact your Financial Advisor.

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