A south dakota trust company has 3 trust company business models to offer. The traditional corporate trustee offered the choice with limited control for clients. Over the last 20 years, newer corporate trustees offer two additional trust company business models. Wealth Advisors Trust, a south dakota trust company, offers two corporate trustee solutions. These solutions place the advisor and their clients back in the driver's seat. For the last 400 years the traditional trust company had the monopoly of trustee services. Today, control and choice are options for corporate trustees who operate as a south dakota trust company.
Traditional trust company model: This structure allows the trust company to control everything. From trust accounting, administration, distributions, and investments. Everybody knows and dislikes this model. Unsurprisingly, the control rests in the hands of the corporate trustee. A south dakota trust company can operate under this model. However, most do not. Their investments products offered have many in-house solutions.
Administrative trust company model: This structure allows the trust company to control the trust accounting and administration. In this trust company business model, the trust company still operates as the corporate trustee. Notwithstanding, a south dakota trust company operates under the directed trust laws. The trust document directs who manages the trust investments and trust distributions. The responsibility and fiduciary obligations fall under the firm and/or individuals and not the corporate trustee.
New trust company model: This structure allows the trust company to control the trust accounting, administration and distributions. A south dakota trust company using this model has the option to direct or to delegate the investment responsibilities. The guidance comes from the trust company. Majority of trusts used by financial advisors fall under this model. Wealth Advisors Trust collaborative approach when working with financial advisors make this a very powerful tool.
Today, financial advisors and clients have options when choosing a corporate trustee. A south dakota trust company, such as Wealth Advisors Trust, can offer administrative and new trust company services. The future is here.