Can You Keep Your Financial Advisor in a Delegated Trust?

For many families, one of the biggest concerns when creating a trust is whether they will need to change financial advisors. If you have worked with the same advisor for years, that relationship likely reflects a deep understanding of your goals, investment philosophy, and family circumstances.

The good news is that in many cases, a delegated trust allows your current financial advisor to remain involved.

Why This Question Matters

Some people assume that when assets are placed into a trust, the trustee automatically takes over investment management. While that may happen in certain structures, a delegated trust offers a different approach.

It allows families to benefit from professional trust administration without necessarily changing the investment relationship they already trust.

What Is a Delegated Trust?

A delegated trust is a trust arrangement in which the trustee appoints an outside investment advisor to manage the trust portfolio.

The trustee continues to oversee the trust, but the advisor handles day-to-day investment decisions.

This means an independent corporate trustee can administer the trust while the investment strategy remains with a familiar advisor.

What Does Your Financial Advisor Continue to Do?

If your advisor is retained in a delegated trust, they may continue to:

• Manage the investment portfolio
• Recommend asset allocation changes
• Execute trades
• Monitor performance
• Participate in discussions with the family and trustee

From the family’s perspective, the investment relationship often remains largely unchanged.

What Does the Trustee Handle?

The trustee focuses on responsibilities unrelated to portfolio management, including:

• Reviewing distribution requests
• Maintaining trust accounting
• Coordinating tax reporting
• Communicating with beneficiaries
• Monitoring the delegated advisor

This division of labor allows each professional to focus on what they do best.

What Questions Should You Ask Before Setting Up a Delegated Trust?

When evaluating whether your advisor can continue managing the assets, consider asking:

• Is the advisor willing to work with an independent corporate trustee?
• Does the trustee delegate investment authority?
• What oversight and reporting will be required?
• Will custody arrangements change?
• How will fees be structured?

These questions help ensure that all parties understand their roles from the outset.

Why Families Value This Structure

Keeping a long-standing advisor can provide important benefits:

• Continuity in investment strategy
• Less disruption during trust implementation
• Preservation of trusted relationships
• Collaborative decision-making among advisors and trustees

For many families, this continuity is one of the strongest reasons to consider a delegated trust.

How Independent Trust Company Works with Advisors

Independent Trust Company serves as an independent corporate trustee and regularly works with outside financial advisors in delegated trust arrangements. ITC provides trust administration and fiduciary oversight while allowing qualified advisors to continue managing investments when appropriate.