It doesn’t do much good to spend a lot of time securing new clients, if current clients leave.
Trust account clients should be your most loyal accounts because trusts may continue for generations. However, many investment managers lose trust accounts because the successor trustee discontinues their services.
We believe the relationship you established with your client, the Trustor, should be maintained and that the Trustor’s intent was for you to continue managing the investments that you have managed for up to decades already.
To ensure your client’s intents are followed and you continue to manage the investments, you need to review two important areas of their trust agreement: successor trustee and delayed distributions. Much too often the revocable living trust is ignored because it generally does not affect the investment management during your client’s lifetime. However, upon their death, the trust agreement becomes law for all the assets held in trust and the successor trustee has the power to discontinue your services.
- Successor Trustee. Ensure the successor trustee will maintain the relationship between you and your client.
- Delayed Distributions. Ensure the trust funds are not distributed prematurely, squandered by the beneficiaries or taken by the IRS.
Providence First Trust will maintain the relationship you have established with your client and we specialize in teaming with investment managers in administering trust estates. Our staff of attorneys can help you and your client review these issues and suggest ideas to ensure your client’s intents are followed for generations.