However, it also subjects him or her to taxes on the income from the trust. Depending on the trust and the powers of the trustee, it might open the trust assets to attack from creditors. Here's the downside to choosing family members. Lack of expertise . Relatives often lack the financial acumen of a professional trust officer, and so must often hire professional help.
Trusts can last for many years.
Family conflicts . Depending on their relationship with the beneficiary, family trustees may have problems with what the beneficiary wants and what's best for him or her. Sibling rivalries may also complicate arrangements in which one brother or sister serves as trustee for others. A professional manager doesn't face such pressures. It has deep pockets and is familiar with the nuances of law and investment financing, but its fee for investment advice may be smaller than the one it charges to serve as a co-trustee.