Personal Trust Services

Must I have a trust to use your investment services?
Many of our clients choose trust arrangements because of the unique advantages they offer. But no, you are not required to create a trust. If you prefer, you can put us to work on a less formal basis. All it takes is a simple letter of instructions, designating us to act as your investment agent.

What are the advantages of a trust?
With a trust you can not only draw on our broad investment capabilities but also arrange to have us perform any number of special services, now or in the future. These personalized services could range from making payments of estimated taxes while you’re traveling abroad to providing full personal financial management in the event you suffer an incapacitating illness.

Also, you can name one or more beneficiaries to receive the assets of your trust at your death. These distributions avoid probate. Or, you can have your trust continue beyond your lifetime, serving as a source of continuing income and support for your spouse, a child or others whom you designate.

Is it difficult to set up a trust?
No. To put us to work as your trustee, you take two steps. You deliver the money and/or securities that you wish to place in trust. And you give us your written instructions in the form of a trust agreement. The agreement, drawn up by your attorney, is signed by you (as creator of the trust) and by us (as trustee). That’s all there is to it.

Trusts of this type are often called LIVING TRUSTS to distinguish them from TESTAMENTARY TRUSTS (those established under the terms of a will. Living trusts created for the purpose of personal asset management are also known as REVOCABLE TRUSTS. That’s because the person who creates the trust reserves the right to cancel or revoke it.

If I create a trust, can I keep control?
Certainly. Usually our trust clients keep control in three ways:

First, the trust agreement specifies that they may make withdrawals (or additions) at any time.
Second, as just mentioned, they reserve the right to cancel the trust.
Third, they reserve the right to give us new or different instructions by amending the trust agreement.

Can I make the investment decisions?
Most of our revocable trust clients look to us for objective, unbiased portfolio supervision because they lack the time or specialized knowledge to do all the necessary investment homework themselves. You can delegate as little or as much investment responsibility as you want.

Is trust service expensive?
No. Our fees are competitive with those charged by investment advisory firms (for services that may not include custodianship of securities, recordkeeping and other conveniences) or by mutual funds.

How big must a trust fund be?
If you think of millions of dollars when you hear the word “trust,” you are the victim of a widespread misconception. Today’s trust institutions have developed ways to handle even relatively small trusts efficiently. In any case, we do not think in terms of fixed minimums. Instead we ask ourselves, “Is a trust the best way to meet this person’s financial management needs?”

To find out whether a trust would be right for you, schedule an exploratory talk with a trust officer.

How are the assets in my trust invested?
Our portfolios are based on the principle of diversification, but customized for each trust's unique needs. Our process begins with a comprehensive overview of the goals of the trust. From there, we establish the appropriate risk tolerance to match those goals. We manage the investments per one of seven objectives: Conservation, Income, Income with Moderate Growth, Balanced, Growth with Moderate Income, Growth or All Equity. Once the investment objective is established, we utilize an appropriate mix of equities, fixed income, mutual funds, exchange traded funds and alternative investments suited to the trust's mandates. The expected return varies with each objective.

Who should be the trustee of my trust?
Look for experience first. Look for someone – or a financial organization, such as us – who has handled every type of market for diverse sorts of families. You will want such experience brought to bear in providing financial security for you and your family.

Your trustee should have financial strength as well as professional investment capabilities. The trustee should participate in the financial markets every day, and trusteeship must be treated as a full-time job.

That describes us perfectly.

How can I find out more about trusts?
That’s easy. Our Wealth Management professionals will be glad to assemble further information for you, analyze your investment requirements and answer questions not covered here. Please call on us.