– Jonathon Jaffrey, Springbanc Philanthropy Advisors

According to recent estimations, by the year 2055 somewhere between $41 and $136 trillion of accumulated assets will pass from one generation to another, marking what may be the largest intergenerational wealth transfer in American history. Along with this transfer of assets comes a transfer of values as one generation seeks to prepare the next for managing wealth responsibly.

– Dick Arnold, President, San Pasqual Trust
– Dick Patterson, Chief Fiduciary Officer, San Pasqual Trust

For several years, individuals who serve as a trustee have been required to register with the California Attorney General. The only exceptions are those who serve as trustees of trusts for family members or for a limited number of non-family members. For now, this requirement is still in effect.(1)

Now, California has moved beyond registration and will be requiring formal licensing of private fiduciaries.

– Dick Arnold, President, San Pasqual Trust

A "private trustee" is usually an individual – a client's trusted advisor – who takes care of the client's family when he or she no longer can. You see lawyers, accountants, business managers and financial advisors filling this role. The client can enjoy the comfort and security of having a trustee who knows the client's family, knows the client's financial affairs, and can be trusted to do the right thing.

Despite the benefits of using an individual as a trustee, there can be concerns: