Question

All the following statements concerning the selection of a trustee are correct EXCEPT

	A.	Individual trustees are not audited and consistently checked to the same degree as corporate fiduciaries.
	B.	If a beneficiary is also named as trustee, there is the opportunity to have greater flexibility in a trust as well as the most favorable tax consequences.
	C.	If a family member is selected as trustee, he or she is often placed in an uncomfortable, and perhaps untenable, position.
	D.	Corporate trustees are more likely to be able to deal with rapidly changing tax law and the complexity of investment, management, and other responsibilities of a fiduciary.

Answer 1

Answer:

Option "d" is correct.

Corporate trustee- Corporate trustee is nothing but a company who acts as a trustee. The corporate trustee has shareholders and directors. Its role is to act as independent survivor of the security and custodian of assets and act in the interest of shareholders.

A corporate trustee effectively manages and administrates the trust. Corporate trust does not end on the death of directors. Corporate trustee has the limited liability and is a separate legal entity.

A corporate trust structure is more complex. Corporate trustee deals with it.