Retain control of client assets and remain their primary contact

When working with high net-worth clients, trust planning is a regular part of what you do. And if you’re looking to grow your financial advisory business, you want to make sure you continue providing the best possible trustee services to your clients.

Every trust has a unique structure, and navigating the complexities of each can be daunting and time-consuming. Using an Independent Corporate Trustee Service can provide many benefits to your business and your clients.

What Does a Trustee Do?

A trustee is responsible for the administration of the trust and owes a fiduciary responsibility to the beneficiaries of the trust and the trust itself.

Administration Responsibilities Include:

  • Managing trust distributions
  • Recordkeeping
  • Filing Tax returns

The Importance of Trust Distributions

One of the most important roles that the trustee holds is making trust distributions. This process is complex and can be difficult even for an experienced trustee. Many times, the trust document provides some discretion, but things can get complicated if the trustee has a relationship with the beneficiary.

A personal relationship could put the trustee in an uncomfortable position when determining whether a potential beneficiary can receive a distribution of assets. It also poses the risk of exposing the trustee to further litigation from the beneficiaries if they feel that the trustee isn’t protecting the assets.

Often, trusts require distribution of trust income to the beneficiaries. Calculating distributable net income is complex, and state law and the trust language all play a part in the types of income that are distributable to beneficiaries. Interpreting these rules can become problematic when an individual or inexperienced trustee is appointed.

A beneficial way to simplify these tasks is by appointing a corporate trustee.

The Benefits of an Independent Corporate Trustee

Hiring an Independent Corporate Trustee makes them the acting trustee on a personal trust. Choosing this option provides many valuable benefits:

Knowledge and Experience: It’s not unusual for a corporate trustee to have many years of experience and legal and financial expertise. These trustees can help clients when it comes to day-to-day administrative tasks.

In the event of a special needs trust, this knowledge is invaluable. These trusts require the trustee to know and understand the rules pertaining to disability benefits. They will need to play an active role in understanding how distributions can be made to meet the beneficiaries needs.

Third Party Perspective: As a third-party contributor, corporate trustees are able to remain objective in the distribution of trust assets. This means that the trust’s integrity will remain intact through all transactions.

Regulation and Continuity: A corporate trustee will never be unable to perform their duties due to illness, death or other unforeseeable personal commitments that could become a hindrance for an individual trustee.

All-in-One Solution: Combining your investment management fees with Alliance Trust Company of Nevada’s competitive fees will offer your client a competitively priced full-service solution.

Win-Win

As you can see, not only is using a corporate trustee can be extremely beneficial for your clients but it’s also a great business builder for you. Clients with assets held elsewhere may choose to bring them all in-house when given the option to delegate administrative duties to professionals.

Advantages of using Alliance Trust Company of Nevada

Choosing to use a corporate trustee instead of an individual is a big decision, but so is choosing which trust company to partner with.

You need to work with a company that has fast, efficient service and quality solutions with competitive fees. Alliance Trust Company of Nevada is proud to provide the right services at the right price.

At Alliance Trust Company of Nevada:

  • We are not responsible for the establishment of trusts. Instead, we focus on administering trusts and will never be in competition with you for business.
  • Underlying assets will stay in your control, and the client will still use you as their primary contact.
  • As experienced trust professionals, we focus on working with advisors to administer trusts. Our competitive fees combined with your investment management fees offer your client a competitively priced.
  • Full-service trust solution.

If you have any questions regarding Alliance Trust Company of Nevada or our services, please call fill in the form below and we will promptly follow up with you.

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