The Independent Trust Company model is evolving. A trust company manages, invests, and administers your trust assets. The services they're offering and the fees they’re charging are changing to meet demand. Trust company's are being forced to explore new avenues to innovate. These new factors are due to the 700 years of the stagnant types of corporate trustees. Clients are now able to have more control over who is managing their trust assets.
Types:
There are two types of Independent Trust Companies:
- Advisor Friendly Trust Company
- Traditional Trust Company
Most Independent Trust Companies are the same. The biggest differentiation, their abilities to adapt to new technology, economic trends, and investment management. Therefore, an important question when deciding to use an independent trust company, “Why was this Independent Trust Company created?”. If you know the trust company’s DNA, you will have a good understanding of how they will serve you. For example, if you choose a trust company created out of frustration, then they will always be thinking of better ways to improve their service.
Why choose an Independent Trust Company?
Selecting who controls your trust is one of the most critical decisions when creating a trust fund. In other words, choosing a trust company is important because they control everything. There are many important steps to take when picking a trustee. Typically, trustees chosen were convenient. However, the creation of the independent trust company has challenged these typical choices. Here are a few reasons:
- Independent Trust companies are not a part of banks. They think independently and do not have corporate interests.
- Occasionally, branched off from banks, but only focus on the key components of a trust.
- Fee transparency is crucial. Independent trust companies fees are negotiable.
- The grantor, beneficiary, trust protector, etc. can choose who invests the trust assets. An Advisors friendly trust company delegates the investment management to a financial advisor.
In conclusion, the Independent Trust Company is important to giving clients choice and control. This model forces the industry to adapt and change to the needs of the consumers. Choosing to use a trust company is crucially important. This decision should be made carefully. Understanding your options when needing a corporate trustee can help you make the best decision to preserve your wealth and offer peace of mind.