Trust Connection A Monthly Report on Trust News and Information
October 2012
Choosing A Trustee
A trust is often an important step toward fulfilling your financial goals and establishing a sense of order in your life . There are specific material advantages to having a trust : continuity of asset management , privacy , tax savings and more . Often the terms of the trust live on after you are gone . You cannot control changes in your family ’ s life or in the tax law , but you can choose a trustee that will respond to these changes . When selecting a trustee , you typically have three choices :
An individual Common wisdom holds that you can save money and maintain control by appointing a person you know — one of your children , a close friend or relative — as trustee . You can also appoint a financial advisor . But , few individuals have the time , financial and legal knowledge , business expertise and resources to manage your trust effectively . Additionally , the individual who accepts may not understand or be ready for the personal liability that can arise from performing the trustee responsibilities .
A local bank ’ s trust department A bank where you have your checking account may offer trustee services through its trust department . It may seem like a logical choice , the people are friendly and they are local . But , while the bank may be a convenient distance from your home or work , the trust department may be hundreds or thousands of miles away and the jurisdiction may not be the most favorable location in terms of tax laws , investment opportunities or other regulatory restrictions .
The Independent Trust Company Independent Trust Companies arose from the joint desire of financial advisors to retain their client relationships after the primary decision maker died and the client ’ s desire to have their trusted investment advisor , attorney , accountant , and other professionals involved with their families at such a critical time .
How does this Partnership Between Advisors Work ?
Traditional banks and trust companies have separate departments for investment management and trust administration . The Trust Company-RIA Firm partnership simply separates investment management and trust administration into different companies . This arrangement makes National Advisors Trust a “ directed trustee ” and is called “ bifurcation ”.
What is a Directed Trust ?
Generally , a directed personal trust is one under which the grantor or beneficiary has the power to direct that the trust ’ s investments be managed by someone other than the trustee . Under a directed trust arrangement , the trustee performs all other important functions necessary to carry out the terms of the governing trust agreement , including having frequent and necessary communications with the beneficiaries , but refrains from commenting on the investments .
What is the Advantage ?
You are able to specify that your investment advisor directs National Advisors Trust , you get the continuity you want for your family in both investment philosophy and the people . The service is delivered at the same cost or less than the national bank model , but on a local level . This provides the best of both worlds – the comfort and stability of a regulated financial institution to
Bart Albrigo Senior Vice President 9454 Wilshire Blvd , Suite 710 Beverly Hills , CA 90212
623-255-3384 voice 310-362-0311 fax 1-877-511-WEALTH ( 9325 )
Bart . Albrigo @ BHWM . com
BHWM believes there must be a Sacred Trust between Wealth Management Advisors and clients . This is the cornerstone on which BHWM is built .
9454 Wilshire Boulevard , Ste 710 , Beverly Hills , CA 90212 877-511-WEALTH www . BHWM . com
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