GROWTH OF TRUSTEE COMPANIES.

Temuka Leader, Issue 10304, 2 March 1922, Page 3

GROWTH OF TRUSTEE COMPANIES.

About three- years ago we dealt' with the subject of Companies in these , pre-, dieted that, astinre weniHon, the facilities offered * by ? -established concerns of . this nature would b>? availed of -to ; an - increasing extent. Chatting with the .manager of* one of the largest trust companies in, the Dominion recently, we learned that there is now a strong trend of public opinion in favour of Restates being placed In the hands of a corporate hotly. The number of estates haudletL.-in-hiH.. expeiencc has shown a consistent increase', and a noticeable feature "Of the business is the extrint t 0 which the company is intrusted with family or marriage settlements.,, , Business men, too, find it advantageous to appoint a company as attorney during the time they ; are abroad. In the did daysi when; a man did make a will, it was customary to name a couple of friejiflsvaS-'execut-ors, and leave the-matter .at that. Too often no will was executed at all, and" the estate was dissipated or not disposed, of to. advantage, iwith results to ..the dependents. Itids a curious tact that even business men, who are keen and careful in regard to A heir private affairs' while living, are most haphazard, in jpspect to, the disposal of; their propdr% The making of a win* is feinr we all desire to shelve tit I another dayisT feadUyt admit^liA#*''ib : ’Mateverybahah’s dutjn to appoint executors or trustees to act-iii the case of his death. The making of a will is important, but the appointment of suitable trust.ees to ensure* that ’ the - testator’s wishes ..ahpuld be carried out .is even more important. Now thht there are trust companies of undoubted, integrity ad standing it is hot heedful for a man ' to burden any of his friends with the onerous responsibility 'df - looking after his estate if, perchance, he should meet-a-tMaty. end.-’ Even in instances where suitable ;r-private exerntfonj are. willing to undertake U ppuiuuuent, there is ino guarantee that the objects of the testator may hot be: deleatedr by. the un- , timely death of one of the parties. As a rule, too, those who are competent to act fire with .their own affairs, and, " while they may not intend' to ’to ‘ neglect the interests' of the; estate, ' they often unconsciously'' do so. It is seldom, .where" a ;nan • possesses the all-round knowledge and .experience to make, ‘h'i.nr an ideal .executor. ... : ‘ ' • liCjthe selection of an executor a great deal of ,.is necessary. It is essential -‘ thatthe' person' chosen should possess absolute integrity. He should'he'capable of conduct ing the estator’s affairs in ah efficient and thorough • mariner.'-’ He should have financial" resources sufficient to ensure restitution- 'of' -losses entailed by breaches of trust,- and there should be‘some -assurance of continuity of management. This last requirement is of special importance.;', The removal of a private executor -through death or some other, cause may result in serious consequences through management of the estate devolving---upon a : -persoi\, not even contemplated by the deceased, and one--possibly inimical to the interests of the. trust. : By. appointing' recog-. nised tntst companies, .‘'’there' is/positively assured.;- fin'the ' first •' place adequate , /fihanbllil , \ guarantees against loss ‘ fdltitig upbn.;’fhh ~estate from breiiches of trust. As Che success of the trustee c.pnipanies is dependent ~upon . reputation,:' and, public goodwill, it follows that in' the main sound business management will be' available at treasonable; ‘host to (lie estates - entrusted . to - their care. Continuity of administration is also provided, and there is no risk of estates., passing into hands not contemplated by the testator. The accounts of trustees companies are subject to a .close system of audit, and the utmost retic-.pueb-.is observed by the manage-' intent’ Through handling a large, number of estates the executive officers of a trust company are in a position to render the utmost, service. They are thoroughly- familiar with ail requirements, and are able to dispose of property- and other assets in a mariner that is not possible under drdinary circumstances. A private executor may not be able to give personal attention to a matter 7 at; certain. time. ,Uira own private A interests may prevent prompt action.- This delay may- be dangerous;-to the interests offhri estate. By employing a trustwqrthv company this'kind of thing ■is'iivbided. When a company or a firm specialises, tbermis ’usually given much better rserviccj and from what we can see'. companies that specialise in-trustee and executorship work have prpvcn no exception to the rule,Ju (be case of complicated estates or estates whore-.close; management is desirable the employment of a trust company; is , preferable-r-thii point will no doubt appeal to business men. In addition to acting as executors ,or trustees under wills, trust companies ‘also accept transfers of existitig Trri.sts and admin- 1 inter ''under marriage and other settlements. The management of estates of persons of unsound mind is undertaken, as well as the care, of investments of persons who desire to be relieved of business anxieties. A trust company will also act as attorney and agent for absentees, and administer sinking funds or other similar functions, in the case of several recent debenture flotations we notice the names of well-known trust companies cited as trustees for the debenture-holders. In bringing under notice some of the advantages of trust companies, we have no desire to underrate the very good service, done in the past, by private executors and trustees throughout the . Dominion. Very often, such men have cheerfully undertaken onerous duties ' and have, at the risk of much personal loss and inconvenience, .administered the estates entrusted to them to the utmost advantage. Neither is it desired that those who intend to make (heir wills should do so other than through their own legal advisers. In ' this connection we an; pleased to observe that one of the loading trust ■ companies advises its clients to consult a lawyer, and at the same time intimates that legal work of trusts remains with solicitors previously handling the/iffairs of testators.