A corporate fiduciary is a company you can hire to serve as your estate’s executor. Independent trust companies and banks may offer this service in Florida. You should consider the pros and cons of choosing a corporate fiduciary before coming to a final decision on who your executor will be.
Because corporate fiduciaries manage estate planning for a living, they are more experienced and knowledgeable. They could make better investment decisions, and they have access to portfolio managers.
Pro: No bias or stress
When you choose a family member or friend as your executor, they may go through stress and other negative emotions when they distribute your estate if they have a conflict with one of the beneficiaries. Even if you trust them to follow your wishes, it could be too stressful for them. Corporate fiduciaries don’t know your beneficiaries, so they won’t have bias. They will distribute the estate based on the terms provided without getting into conflict with beneficiaries.
Pro: Liable for mistakes
The law holds corporate fiduciaries to a higher standard of care because they have licenses for this line of work. If they make a mistake, they most likely will have to compensate for it. Executors who are your family or friend may only have to compensate for a mistake if serious negligence occurred.
Con: Typically costs more
Choosing a corporate fiduciary is likely to cost more than an individual executor. However, the costs may come close. Individuals still need to hire professionals to help them in estate administration.
Con: Less flexibility
Corporate fiduciaries often have multiple departments, which slows down the process of getting a response from them. They tend to be set in their ways as well. You will need to be specific about the terms and allow for some flexibility in your estate planning before choosing a corporate fiduciary.
Fiduciaries are trustworthy third parties who don’t have an emotional attachment to your estate. They deal with many estates every day and have the experience to effectively manage your asset distribution.