America's Most Advisor-Friendly Trust Companies 2024 - 14

2024 AMERICA'S MOST ADVISOR-FRIENDLY TRUST COMPANIES
THE LARGEST WEALTH
TRANSFER IN HISTORY
From a wealth management
perspective, the allure of moving
assets into trusts increases every
year. The last few years were relatively
quiet on the surface-not a lot of
movement on the state statute level
as the world held its breath for bigger
developments around the world-but
the calm only delays the demographic
storm ahead.
The older Baby Boomers are retired,
and while they're fighting the inevitable
as well as humanly possible, they're
still dying at a rate of about 1 million a
year. Over the next 30-35 years, their
heirs are on track to inherit roughly $3
billion a day or over $1 trillion annually.
And as those assets transfer, the
kids are rarely prepared to handle the
responsibilities.
When a client dies, the advisor has a
chance to retain the account, but the
relationship that has been nurtured
over the years or even decades
evaporates immediately. Unless
you've done the work to extend that
relationship to the next generation,
you'll always be viewed as mom or
dad's money manager, just another
heirloom for the new generation to
deliberate around and then discard.
They want to follow their own ideas
about money. We can doubt the longterm
wisdom of pure robot advice
and other novelties, but the numbers
already tell the story there: No matter
how loyal you were to mom and dad,
most heirs fire the grantor's advisor
anyway.
Every day between now and 2050,
the equivalent of another $3 billion in
client accounts reaches that decision
point. Trusts, by definition, don't die
with the original flesh-and-blood client,
so those assets can theoretically stay
with the original advisor for decades
beyond the generational transfer-
all it takes is the right language on
the documents and you have the
opportunity to remain in the picture with
the next generation for years to come.
That's often a powerful argument
where your clients are concerned.
They put their money in your hands
because they're convinced you'll do
the best job protecting it and helping
it grow. If their estate plan is to keep
assets in trust for their heirs rather
than have them inherit funds outright,
it's only logical they would prefer to
have you, rather than an unknown
entity, manage the assets.
However, the time to have the
conversation and finalize the
paperwork is before your clients die
or become incapacitated. They're
already dying at the rate of $3 billion a
day, which is what the trust industry-
advisor-friendly and otherwise-spent
the past decade capturing assets
while the rest of us pondered the
hypotheticals. Fortunately, as your
clients' trusted advisor, you are
perfectly positioned to provide a
solution to their dilemma of, " who
should we name as successor trustee,
and who do we want to manage the
trust assets? "
All you need to do is avail yourself
of the expertise and reputation
provided by the new breed of
corporate trust companies that will
allow you to manage the trust assets
on your custodial platform of choice
and keep your seat as the family's
trusted advisor in either a directed or
delegated capacity.
Although many of these trust providers
offer only the " directed " option, there
are several that have the flexibility
to accommodate both options
depending on the governing state
statute, family dynamics and particular
needs of the grantors. What is most
important is, with both options, the
advisor cannot be simply " kicked to
the curb " by the grantor's heirs. You
can't get fired.
14
The landscape hasn't shifted. The
demographic tidal wave is still
coming. In circumstances like these,
I'm thinking we'll see the most
strategic players in the business start
consolidating in order to get a bigger
piece of the action.
Odds are good a lot of the companies
in this guide will be buyers. Some,
however, will inevitably get an offer
too rich to refuse as larger institutions
recognize the quality of this particular
line of business. Stress in the
financial system will only accelerate
consolidation. Weaker players (not
profiled in this guide) will vanish,
leaving their accounts in surer hands.
FIND THE PERFECT MATCH
As you put together a short list of
trust companies that may be a good
fit for your clients, remember that
diversification is key. Just as every
one of your clients is different and
has unique needs, many of the best
providers are generalists who excel
in a niche or two, or are outright
specialists.
Learn to recognize the jargon that
differentiates one trust company from
another so you can build a balanced
team of potential partners. Some
are geared toward self-directed IRAs
and pure, hands-off custody and
administration. Others shine when it
comes to classic directed trusts where
trust officers and advisors work more
closely together.
Some of your clients will want to
create trusts that favor one group
or the other. If possible, cultivate
relationships with at least a few from
either side of the bench to give your
clients the best pool of options to
work with.
Ideally, a dedicated trust officer is
assigned to each account. Examine
how payments and beneficiary/client
communications are handled.
America's Most Advisor-Friendly Trust Companies 2024

Table of Contents for the Digital Edition of America's Most Advisor-Friendly Trust Companies 2024
