Roles of Your Professional Advisors
Your financial advisor’s role is to support everyone, not to replace anyone. Your financial advisor will work with you and your tax and legal advisors, helping to coordinate and communicate your complete financial picture. The drafting of your trust document will be done by your estate planning attorney. PTC is available to administer your trust once it’s properly drafted. You can continue to benefit from the judgment of your trusted financial advisor, while your family’s wealth is protected by a knowledgeable trustee.
The Trustee: A CEO for Your Estate
The trustee's role is to administer and distribute the assets in the trust according to your wishes, as expressed in the trust document. There are three primary elements to the trustee’s role:
Custody of Assets
The custodial role is that of a financial secretary and security guard. The trustee must identify and then take title to the trust’s assets, keep accurate records, report to the current beneficiaries, execute and settle all transactions, protect and insure the property, and defend the trust against claimants. The trustee oversees the preparation of appropriate tax returns and all of the trust accounting in compliance with complex state and federal laws.
The trustee is ultimately responsible for the preservation and investment of assets in the trust, ensuring that invested assets are productive and managed appropriately given the trust's objectives. The trustee has the legal responsibility to reassess the objectives of the trust and current market conditions at least annually, and to be sure that the investments match those objectives. Trustees will often hire professional managers to handle day-to-day specialized activities, such as real estate management. The day-to-day investment management is delegated to your trusted financial advisor.
The administrative role is central to carrying out your wishes regarding the use of assets in the trust. The trustee carries out your directions and follows your guidelines in handling the specific circumstances of each request for funds from trust bene ciaries. This involves legal interpretation of the language in the document and appropriate input from family members. Experienced trust administration and recordkeeping are vital components to implementing your plan. The day-to-day relationship management is also handled by your trusted financial advisor.
Why Use a Professional Trustee?
Trustees may have to make tough decisions that might not be popular with all your beneficiaries. After all, the trustee is carrying out your instructions, not your beneficiaries’ wishes. This can be a difficult role to fulfill for a family member, who may not be unbiased or may wish to act in a manner that avoids hard feelings within the family, rather than carrying out your instructions. Also, few family members have investment management skills or expertise in fiduciary law and practice. Family members can be given important advisory roles, such as in approving disbursements or other exercises of discretion.
- Loyalty and independence to carry out your wishes
- Knowledgeable management, protection, and defense of trust assets
- Experienced oversight of the investment process to be carried out by your financial advisor
- Timely and accurate statements of the account to keep you and all current beneficiaries informed
- Consistent annual reviews
- Accountable collection and prudent distribution of income and assets
- Tax reporting, filing, and comprehensive regulatory compliance on behalf of the trust
Why Use PTC?
PTC partners with you and the professional advisors you rely upon to assist you in carrying out your wealth management and legacy planning goals at every stage of your life. While your financial advisor generally cannot serve as your trustee, with our unique model, your financial advisor can continue to provide advice and manage trust assets, allowing you to benefit from checks and balances and a consistent approach across your wealth management and investment strategies.
Advantages of Choosing PTC:
- PTC offers maximum flexibility, working with clients and their financial advisors. Choose to work exclusively with your financial advisor, or work collaboratively with the full expertise of the PTC team.
- Integrating seamlessly into your wealth management team, PTC keeps the process of delivering key communication and statements running smoothly between clients and professional advisors.
- PTC helps clients develop written investment policy statements so all parties have a clear and consistent understanding of goals, objectives, and guidelines for the trust.
- PTC reviews accounts regularly and revising investment policies to reflect changes to the portfolio, client circumstances, and financial markets.
- Experienced and knowledgeable trust officers bring backgrounds in law, accounting, banking, investment management, tax, and business.
- Trust officers are friendly, discreet, and sensitive to family dynamics.
- A team of trust officers and trust specialists are available to you and your financial advisor when you need them.
- Chartered as a national bank, PTC is devoted solely to trust services for families.
- PTC provides trust services in all 50 states.
- As a subsidiary of LPL Financial Holdings, Inc., we are backed by substantial resources and a long-term commitment to independent financial advisors and their clients.
Our focus is on building relationships
We know this requires more than deep knowledge, experience, talent, and education. It requires dedication to providing consistently high-quality service at every level of our operations and administration, and a steadfast commitment to excellence and our governing principles:
- Personal responsibility