As fifth generation trustees, we have seen it all. From family conflicts to the mismanagement of funds and the promises of others to be our financial savior, having a trust can easily become complicated. The one thing we know to be true? The company managing your trust can only have one priority: the management of your trust.
Large banks have one sales pitch when trying to win your account: because they are so big, they will be around forever which means you can trust them. What they don’t say is that they make their money by investing your money in their investment products. The “load” or hidden costs these in-house investment products can drag your trust’s performance down. This drag is there whether the market is up or down and has the potential to significantly alter the performance of your trust and thus the funds available to your family. This not only a detracts from their ability to put you first, it’s a conflict that can’t be ignored.
The best way to ensure you are getting the best return is to stay away from in-house products that are offered by any bank, trust company, brokerage, or anyone else whose interest in not exclusively the execution of your trust. Simply put, it is a conflict of interest. The person managing your trust should not be the person investing it — the fox should not be in the hen house. If someone stands to make money from products they sell you regarding your trust there is no way to ensure your best interest is their only interest.
To be clear in our contrast to the “too big to fails”, we named our company the Independent Trust Company. We know that our independence from conflicts of interest sets us up to be the best advocates for our clients because administering the trust and executing as it was written is our sole responsibility. Our independence protects your freedom to preserve a legacy – your family’s legacy of your trust for generations to come.