Name a Corporate Trustee – But How Big?

The New York Times' latest Wealth Section includes a welcome column on living trusts (if you ignore the sidebar claiming that revocable trusts must file annual tax returns) as well as a plug for naming a corporate trustee in order to avoid family dissension.

The plug comes with a caution from attorney William D. Zabel: Don't name a local bank.

Why does Zabel think trustors should go big bank? He feels hometown banks, attorneys and accountants are tempted to favor some family members over others. The Times offers as example a situation where an out-of-state son-in-law and his wife have spent years battling "the locals" and her hometown siblings.

Small town trust departments aren't always ideal, but the services of megabanks also have bitter critics. On balance, isn't a capable hometown bank a reasonable choice for nonbillionaires?