What are the Advantages of Having a Company as Trustee of a Unit Trust?
Some of the advantages of using a corporate trustee include:
Removal of the bulk of the risk of personal liability which is the worry individual trustees are exposed to (although the directors of a corporate trustee may be personally liable in certain circumstances).
It is easier & cheaper to effect a change in control of the trust (eg. directorship/member changes of the corporate trustee, rather than the removal and appointment of an individual trustee).
In case of death of individual trustee all assets of the trust have to be again transferred in the name of new individual trustee, however if a company is a trustee, there is no change of ownership of assets even in case of death of director of trustee company.
No need to wear the cost of transferring assets to the new trustees or changing names on investments and bank accounts when there is a change in trustees.
Control of the fund is more certain in circumstances of death or incapacity of key persons.
The directors of Trustee Company can be unit holders in their individual capacity whilst still being in control of the trust.
Related Tags: Company Incorporation Services | Unit Trust Set Up