Trustees have duties of loyalty to the beneficiaries according to the intent of the original owner. They can’t, for example, spend the assets in ways that would deprive the beneficiaries of them.
There are advantages to naming an outside professional as trustee instead of a family member:
- They know the duties of a trustee.
- Will maintain continuity of assets.
- Avoids conflicts with siblings.
- Is insured.
- Has succession plan to pass on trust to others on close of business or death.