High net worth investors who open a trust account have two choices when it comes to choosing a trustee, generally speaking: assign a friend/family member/associate, or hire a corporate trustee to handle the trust management duties. If you’re looking for a corporate trustee service, consider The Advisory Trust Company of Delaware.
6 Benefits of Using Advisory Trust as Your Trust Administrator1
1) A Singular Focus on Trust Administration Services
At Advisory Trust, they focus solely on administering the trust, meaning you can keep your financial advisor and the money manager strategies that make up your investment plan. Some corporate trustee services require you to give them discretion over investment decisions within the trust – meaning you would have to potentially fire your financial advisor and hand over control of your portfolio to the corporate trustee.
2) Trust Management with Tax Benefits
Advisory Trust is domiciled in Delaware, one of the most wealth-friendly states in the U.S. For example, in Delaware there are no taxes on income and capital gains accumulated in the trust for out-of-state beneficiaries, and there is also no Delaware state income tax on income distributed to out-of-state beneficiaries. Saving money on taxes doubles as a wealth preservation strategy in this case.
3) Corporate Trustee Services that Protect Your Privacy
Delaware laws also have elements designed to safeguard privacy. There are no public recordings or filings required for assets held in a Delaware trust. If your desire is to keep your assets and perhaps the existence of the trust private, Delaware laws make that possible.
4) Protecting Your Assets
The level of protection you get from creditors and your beneficiaries’ creditors depends on state laws. Delaware laws provide for rigorous enforcement of spendthrift provisions – meaning your beneficiaries’ creditors cannot reach trust assets.
5) No More Sales Pitches
If a corporate trustee has a product to offer you besides trust administration services, chances are they will try to sell it. At Advisory Trust, you will not be pitched investment products nor will you hear offers for products or services like credit cards, auto loans, checking/savings accounts, and so on – they simply don’t offer them.
6) A Trust Administrator with Experience and Strength
They have offices in Delaware and Arizona, and currently oversee $1.3 billion in assets for more than 1,200 trust accounts. Their parent company, Wilmington Trust, has been in the wealth management business for 105 years, serving as trustee and advisor for prominent individuals, families, and foundations.
Learn More About Corporate Trustee Services and Advisory Trust
One of our Wealth Managers would be happy to share more materials with you about the trust management services provided by Advisory Trust. We can also talk with you about the process of hiring a corporate trustee, while reviewing your financial and estate planning situation and offering any helpful insights we have. Give us a call today at 1-800-541-7774 or send us a note to wealth@wrapmanager.com.
By Seton M. McAndrews, CFP®
Seton is a CERTIFIED FINANCIAL PLANNERTM professional and Vice President of Investments at WrapManager, Inc.
Source:
1 The Advisory Trust Company of Delaware
To the extent this presentation includes any state or federal tax advice, the presentation is not intended or written by WrapManager, Inc. to be used, and cannot be used, for the purpose of avoiding federal tax penalties. WrapManager, Inc. does not advise on any income tax requirements or issues. Use of any information presented by WrapManager, Inc. is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for income tax questions and assistance.
