EDGE Magazine | Q3 2011
Professional Independent Trustees
The above sounds wonderful, right? Well... lack of knowledge remains an issue that even a PTC cannot be overcome. In comes the independent professional trustee, someone you can be with on a first name basis.
Many professional independent trustees have specialized training, expertise, and exposure necessary to oversee a trust. The service is usually provided by an attorney, accountant or professional trained to provide fiduciary services. An independent trustee can help avoid conflict of interest in the jurisdiction where the trust resides; serve as a neutral party to ensure the goals of the trust are met and compliance is observed; and work closely with the registered agent or local trustee. Independent professional trustees are more likely to respond quickly because the fiduciary duties fall directly on them as individuals (or as smaller trust company); consequently, it is easier to develop a personal relationship. A professional trustee can be appointed as a director in a PTC to ensure compliance by the PTC and proper execution of transactions and operations.
Furthermore, to ensure transparency and accountability, independent professional trustees will rely on external professionals to provide auditing and delegate investment duties. Most importantly, bank account administration and commercial transactions are handled personally with technical knowledge. As such, the trustee can serve as a true guide and administrator.
Professional independent trustee services are not free but they are less dire than at a larger trust company or bank. Some jurisdictions require licensing for professional trustees but many don't. On a last note, universal insurance for trustee operations is not always available or mandatory but some professional trustees have limited professional indemnity insurance.
As such, independent professional trustees can offer a greater sense of confidentiality, stability, uniformity, and reliability that is most sought-after today.
Lourdes Haywood-Bogaerts , Attorney-at-law Group Legal Counsel Aspen Group Limited
www.aspenoffshore.com lourdes@aspenoffshore.com
Suite 2302-3 Pacific Plaza 40 Des Voeux Road West Hong Kong Tel: (852) 3175 8758
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