Are you looking for professional experts to manage your wealth? Placing your assets in a trust is an excellent idea. A trust offers wealth management and estate planning benefits, from avoiding probate to tax benefits, protecting assets, etc.
Unfortunately, many people might be worried about handing their assets over to a trustee. However, there is a type of arrangement where you can use a trust, and still retain a higher degree of control – an advisor friendly trust.
What is an Advisor Friendly Trust?
An advisor friendly trust — advisor directed trust — is a type of trust run by trustees in conjunction with appointed advisors. An individual appoints advisor(s) who handle specific elements of the trust while the trustee oversees its overall administration.
How does an advisor friendly trust differ from other trusts? In a traditional trust, the trustee handles all the aspects of managing the trust, from investments, distribution to beneficiaries, accounting, etc. They can delegate some of these duties, but they are always in complete control.
In an advisor directed trust, the advisor takes over some of the duties and has complete control over specific elements of the trust. For example, an investment advisor will manage all the aspects of trust investments, with the trustee only maintaining an oversight role.
Benefits of Working with an Advisor Friendly Trust
There are several benefits of working with an advisor directed trust. Below is a look at some of them:
1. Spilt Duties of the Trustee
A directed trust splits the responsibilities of running a trust between different parties. One of the major benefits of this is that it allows you to reap the benefits of having both a trustee and a wealth management advisor. For example, a corporate trustee will offer you stability and extensive experience in trust management. On the other hand, a financial advisor will bring expertise in financial management decisions.
2. Work with Experienced Trust Advisors
With an advisor friendly trust, you can appoint different individuals to handle specific duties and responsibilities. For example, an investment advisor, estate planning attorney, accountant, financial planner, stockbroker, etc. These advisors – and the trustee – create a trust advisory team, who all work together to optimize the running of the trust.
3. More Control and Protection
In a traditional trust, a trustee has a fiduciary duty to act in your best interest. Sometimes, this discretion can mean going against your wishes or those of the trust beneficiary. However, an advisor friendly trust offers you more control over your trust while making it more flexible. For example, you can appoint family members, friends, or advisors who are more familiar with your needs, wants, and vision. As a result, you can have more say on how the trust runs, guaranteeing that your wishes are always protected.
Conclusion
A trust offers several benefits in the management of your wealth and assets. However, by setting up an advisor friendly trust, you can reap even more benefits. The major ones include having more experts, which optimizes its operations. You also have more control over the management of the trust.