Directed Trusts : The Ins and Outs

Directed trusts separates who manages the trust assets and who administers the trust assets.  This rule gives everyone loads of flexibility for anyone using a trust under South Dakota trust laws.  It allows a person to place her property—both investment and business assets—in trust for heirs as income producing property. This process involves directing the control of the management of trust assets to third party such as a financial advisor, family member or family office but not the corporate trustee. A South Dakota Directed Trust is unique because it allows a ‘donor’ (trust geek speak – grantor) to use a decide who will manage, preserve, enhance, and accrue value for all sorts of property placed in a trust.  These assets can include more than stocks, bonds, mutual funds—ranches, mom and pop shops, apartment complexes, valuable artwork, or even jewelry.

South Dakota’s Directed Trust laws allow grantors to split-up the fiduciary responsibilities and duties that normally tag along with financial investments.  A complex situation traditional and unique assets would have a financial advisor managing/overseeing the marketable securities and a hospitality specialist to manage the day-to-day operations of your fast food franchises.  The corporate trustee would only focus on the trust accounting and administration. This also typically results in lower fees because the primary wealth advisor and all parties involved are responsible for fewer burdens.

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Definitive Guide to Directed Trusts

Most financial advisors, and clients are well aware of what directed trusts can do for them (e.g. provide flexibility on management of trust assets).  There is allot of ‘noise’ about directed trusts and explaining the hows, whys, why nots etc. is important for all to be educated about.

The critical thing to keep in mind is that the trust industry is undergoing a quiet revolution that has wrested control of trust accounts away from traditional trustees—primarily in the banks and other large institutions—and back into the hands of independent trust companies, advisors and most importantly clients.

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Adviser Friendly Trust Company

Winner declared in South Dakota best trust company face off

Citi, Guggenheim are not “Too Big To Fail” after an independent trust company beats giants in the ranking of best client trustee service in South Dakota.  Wealth Advisors Trust Company ranked #1 in trustee client service per a recent poll.

Money center banks and blue-ribbon wealth management complexes are out of favor as investment advisors and family offices seek partners in the trust haven state of South Dakota they can count on to keep their clients’ interests in mind. And Wealth Advisors Trust Company is the homegrown South Dakota trust company that leads the way. (more…)

The Secret Your Estate Planning Attorney Won’t Tell You

An interesting blog post was written from acclaimed writer Dan Solin in  the Huffington Post.  He discusses how attorney’s do not always give clients and financial advisers information that they have choices on corporate trustee selection.  It is an easy and efficient read.

http://www.huffingtonpost.com/dan-solin/the-secret-your-estate-pl_b_642539.html

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