It’s crucial to make a plan for how your property is going to be managed in the event of your death or incapacitation. This process is known as estate planning. The most used estate planning vehicle is a will. This is the simplest method to make your wishes known after death. However, some people prefer using trusts as an estate planning tool. A will is easy to create since it’s just a document that has instructions about the distribution of a deceased’s property. On the other hand, a trust is more complex and more expensive than a will. If you want to learn more about what trust companies do, continue reading.
What is a Trust Company?
A trust company is an organization that serves as an agent or trustee on behalf of a trust. This can either be a stand-alone entity, or it can be a division of a larger organization like a bank. If you are planning to use a trust as an estate planning tool, a trust company can act as a trustee. The best trust companies can also help you with your financial planning. This is why you need to conduct a bit of research when looking for a trust company.
Managing Trusts on Behalf of Individual
Rather than appointing an individual to manage your trust, you can work with a trust company instead. However, these companies are not only limited to trust management. Apart from this important role, they can also handle custodial arrangements. You will also find that the best trust companies also offer wealth and asset management, and brokerage services. Trust companies act as fiduciaries. This simply means they are legally mandated to act in the best interests of their clients.
Trust companies can also handle estate settlements and oversee the process of asset distribution. In their capacity as agents or trustees, they can also handle stock transfers and beneficial ownership registration. A lot of trust companies exist as branches of banks and other financial institutions, and this makes them uniquely positioned to deal with the wealth management aspects of trusts.
These are some of the top duties of trust companies. Apart from the above-mentioned, trust companies can also provide brokerage services. This makes them one-stop shops. You can begin your search for a trust company by visiting a reputable bank. Get in touch with us today and we will assist you in finding the best trust company to work with.