What is a Discretionary Trustee?
A Discretionary Trustee is an independent third-party professional organization, typically a bank, which specializes in providing fiduciary and investment services to individuals and institutions. A Discretionary Trustee follows written policy in its investment decisions and in doing so takes on the duties of an investment fiduciary.
Why Hire a Discretionary Trustee?
Hiring a Discretionary Trustee distributes fiduciary responsibility more broadly, reducing the possibility of conflicts of interest. An independent professional trustee impartially operates the plan in the best interests of the participants and adds confidence that assets are used for the sole benefit of participants, since trust investments are titled in the name of the Trustee.
Benefits to Client
- Reduce personal liability
- Avoid conflicts of interest
- Independent & objective plan advice
- Compliance guidance
- Investment expertise
- Continuity
- Agency monitored & audited
- Ease of overall administration
- Providing consolidated asset and income statements
- Processing receipts and disbursements
- Preparing required tax forms
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