October 18, 2010

If your firm has its own trust company you can skip this; however, if you’re like my firm and need an independent administrative trustee read on.

We rarely come across a client who needs a trustee to take complete control of their assets in the event of their incapacity or death but we do have clients who have need for an administrative trustee. Unfortunately most major trust firms take an all or nothing position; i.e., if they become trustees they also become the portfolio managers. To meet the needs of independent advisors who need a relationship with a independent trustee, a number of firms have established Trust platforms. I realized how big this service had grown when I saw a recent Investment News headline “Schwab’s trust unit reaches milestone.” The milestone is $1 billion in assets. If you’re in need, major players in this universe are:

Fidelity Personal Trust company
National Advisors Trust
Pershing Advisors Trust Network
Schwab Bank Trust Services

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