Trust companies can help you get the most out of your assets and investments. A reputable trust management firm with experienced planners and advisors will take the time to understand your goals and create a tailored financial plan. Leading trust firms employ experienced professionals, like brokers, attorneys, financial planners, and real estate experts, to handle a range of services. Here’s how you can get the most out of your partnership with a trust firm:
Review the Firm’s Services
You should create an outline of your financial goals before you hire a trust management firm. Once you understand your goals, you look for trust companies that offer the specialized services you need. Trustees will help you complete various processes, from estate planning and wealth preservation to tax management and philanthropic strategies.
Trust firms usually offer financial planning, investment and tax services, and legal advice. Some firms offer specialized services, such as charitable giving and generational wealth transfers. The services vary from firm to firm, so find a company with experience handling your desired services. Request explanations of the firm’s investment philosophy and past performance to identity their service quality.
Choose the Right Trust
Trust companies manage different types of trusts, including those with revocable and irrevocable custody. Revocable trusts accommodate changes, so you can adjust the names of beneficiaries or dissolve the trust. This option gives you control over your trust at all times. Irrevocable trusts don’t allow changes and cannot be dissolved without approval from the beneficiary or a judge. This trust option is suitable for individuals who want to avoid taxes on gifts and prevent creditor legal actions against inheritances. Trust companies also manage living and testamentary trusts, second-to-die life insurance trusts, charitable trusts, and others. To get the most out of a trust company’s services, choose a firm that manages the trusts you’re interested in creating.
Communicate Regularly
Life changes, such as marriage, childbirth, divorce, or business development, can affect your trust structure. Changing laws can also call for trust structure updates. You should keep an open line of communication with your trustee to inform them of evolving personal circumstances. Request regular reports on your trust’s performance and ask for clarification on all concerns.
Ask for transparency and review the decisions the management company makes concerning your assets. Identify who is responsible for making financial decisions and schedule regular meetings with the designated trust officer. Maintaining regular communication allows you to track the performance of your trust and request changes based on emerging developments.
Monitor Fees and Costs
Trust companies have unique fee structures, including flat rates, percentages of assets, or performance-based models. The firm should be fully transparent about these fees, so seek clarification before you start a new partnership. If the trustee charges a corpus fee, they take a specified minimum percentage of assets per year. Corpus fees vary depending on the state, trust complexities, and your asset’s value. Smaller trusts usually have a flat fee model, which can result in lower costs than asset percentages. You can also prioritize flat-fee models if your assets require reduced hands-on management. Some firms charge additional fees based on annual expense ratios, trading fees, trust income, and brokerage commissions.
Track Your Trust’s Performance
Modern trust companies offer digital tools and technologies for you to use to access your legal and financial information. Digital platforms offer a convenient way to track your trust’s performance and investment portfolio. You can also access information and share or download documents securely. Ask your trustee about the safest ways to access the digital portals to protect your sensitive information from unauthorized interception. Instant access to information allows you to schedule meetings with your advisors when you need to discuss changes. You can also verify trustee reports by viewing online documents and performance records.
Find a Reputable Trust Management Firm
Get the most out of a trust company by choosing experienced fiduciary professionals with proven management success. Financial experts will customize your trust services and investment strategies to match your needs and goals. Contact a trust management firm today to learn more about their services and benefits.
