He's wrong about the trust department. Bank trust departments must adhere to the "prudent man rule"..and they will invest long term funds, like these, in their own equity portfolios, unless the grantor ( the mom) specifies only CDs or other guaranteed instruments.
To make sure that the child gets the best protection, it is best to appoint TWO trustees, a family member or other person who understands what the mother would have wanted to do for her child, and a trust department to actually manage the money.
The classic example is that of the 18 y.o. who wants a $100,000 Corvette. The bank would say no, if it was the sole trustee..but if the co-trustee says, yes, the mom would do hat for her daughtewr, then the bank can cut the chekc and is off the hook for any claim of malfeasance.
Also advisable to give the family trustee a "hammer clause"..the right to remove the bank and and name a new financial trustee..this provides leverage against lousy service, lousy performance, and high fees..
Good advice. EVERYONE should adhere to the 2 trustees rule! We learned the hard way that while hubby’s dad had the beginnings of dementia, sister took Dad down to change the trust into her name only. Since then she has had him declared incompetent and stole almost every penny he had.
We have been in probate court for over 1 1/2 years now.