Selecting a trustee is a key decision in establishing a trust. Many families turn to corporate trustees such as banks or independent trust companies for their experience, objectivity, and operational capabilities. However, a common concern arises:

Will my financial advisor still be able to manage the trust’s investments if we appoint a corporate trustee?

Evolving from Traditional to Flexible Trust Structures

Traditionally, many corporate trustees required that trust assets be managed internally. This practice was driven by a desire for control, compliance, and risk management. However, while this model ensured that the trustee could closely oversee all aspects of the trust, it often conflicted with a family’s desire to maintain a long-standing relationship with a trusted financial advisor.

Today, the industry has evolved, and so have client expectations.

Understanding the Directed Trust Model

Modern trust law allows for greater flexibility through the use of directed trusts. Under this framework, trust responsibilities can be divided among several professionals:

• A trustee who handles legal and administrative duties
  
  
• An investment advisor who is specifically authorized to direct how the trust’s assets are managed
  
  
• A distribution advisor (if named) who may guide when and how assets are distributed to beneficiaries
  
  

This structure allows families to preserve their relationship with their financial advisor while still benefiting from the oversight and impartiality of a professional trustee.

Why This Matters to Financial Advisors

When a corporate trustee supports the directed trust model, advisors remain actively involved and clients receive more cohesive service. The benefits include:

• Investment continuity: clients stay on track with their existing strategy and advisor
  
  
• Stronger relationships: advisors maintain their role across generations
  
  
• Collaborative oversight: a team approach that promotes compliance and performance
  
  

Not All Corporate Trustees Offer This Flexibility

It’s important to note that not every trustee is open to external investment management. Some still operate under a fully bundled model, requiring that all trust assets be managed in-house. Advisors and clients should carefully evaluate a trustee’s approach before moving forward.

How Independent Trust Company Supports Advisors

At Independent Trust Company (ITC), we understand the value of trusted advisor relationships. That’s why we offer flexible trust solutions, including directed and delegated trusts, that enable financial advisors to continue managing trust investments.

We serve as a neutral and experienced partner, offering:

• A non-competing model that protects and strengthens advisor-client relationships
  
  
• Trust administration free from product bias
  
  
• Discreet, personalized service tailored to each family’s unique needs
  
  

If you’re looking for a trustee who values collaboration and puts your clients’ interests first, ITC is here to help. Contact us to learn more about how we work with advisors to deliver exceptional trust administration.