Lisa M. Smith-Shryack, Vice President and Iowa Director of Trust & Wealth Management at Security National Bank Iowa, said on Mar. 31 that the need for professional guidance in managing wealth has become more important as financial matters grow increasingly complex.
Smith-Shryack explained that while estate plans often focus on detailed provisions for trust management and distributions, less attention is given to who will actually carry out these decisions. She raised the question of whether a family member, trusted friend, attorney, or certified public accountant should be appointed—or if a corporate trustee may be the best choice.
A corporate trustee is defined as a financial institution or company with trust powers that manages and administers trusts on behalf of beneficiaries. According to Smith-Shryack, “The fiduciary responsibility of a corporate trustee is to manage trust assets in the best interest of the beneficiaries.” Corporate trustees are held to strict duties including loyalty, impartiality, care, diligence, prudence, and compliance with laws such as the Uniform Trust Code.
Corporate trustees can serve in several roles: full-service trustee managing all aspects; delegate trustee responsible for oversight but able to assign tasks; co-trustee working alongside family members; or directed trustee following instructions from other trust participants under state law. In Iowa specifically, since July 1, 2020 new statutes allow for appointment of directors or protectors who can manage specific aspects of trusts separate from traditional trusteeship.
Smith-Shryack said legal requirements around trusts have become more complicated due to changing tax laws and regulatory standards. She pointed out that professional trustees use compliance teams and specialized software to ensure responsible management and reduce legal risks.
She outlined situations where appointing a corporate trustee may be advisable: when assets are significant or diverse; when trusts are intended to last generations; when family dynamics are sensitive; when beneficiaries require special protection; or after death or incapacity ensures continuity. Key benefits include professional expertise in administration and investments; impartiality helping avoid conflicts among beneficiaries; stability over time regardless of personal changes affecting individuals serving as trustees; risk management through regulation by authorities; and comprehensive services covering investments and reporting.
Regarding costs, Smith-Shryack said fees typically range from 1% to 1.5% annually based on asset value plus possible additional investment management fees between 0.25%–0.50%. Extraordinary fees may apply for unusual administrative needs like litigation or asset sales if approved by courts.
When choosing a corporate trustee she advised considering experience level in industry practice areas such as transparency about services/fees/communication style flexibility responsiveness relationships with beneficiaries jurisdictional factors—and thinking long-term about how future changes could affect appointments made today.
In conclusion Smith-Shryack said selecting any type of trustee remains an important decision shaping outcomes for future generations: “The role of a corporate trustee has evolved to meet the complex needs of today’s families… The corporate trustee now plays a key role in preserving wealth honoring intent protecting beneficiaries ensuring family legacies.”
