Estate planning can be a complex process. Your clients want peace of mind that their heirs will be cared for when they pass.

To help your clients feel more confident about their plans, offer them a solution that focuses on their needs. With directed trusts, they can appoint their financial professionals and family members to manage only certain aspects of the trust.

Continuity of Service

Often, wealthy clients prefer to keep control of their destinies. They want to choose their investment professionals, committee members, and trust beneficiaries. In a directed trust, they can do just that.

This arrangement allows the client to select focused experts to manage specific aspects of their trust and helps avoid costly mistakes in the future. In addition, separating these roles increases specialization and creates a high standard of service.

In addition, an advisor directed trust can help heirs avoid costly estate taxes and delays in the transfer of assets. For example, when a client leaves behind multiple bank accounts, brokerage accounts, credit cards and loans, automobiles, collectibles, and even real estate, it can be complicated to determine the ownership and value of the assets. In a directed trust, the owner can name one person to gather information and ensure all assets are properly accounted for. This can greatly simplify the process in the future.

Personalized Wealth Management

When someone dies, settling their estate can be a complex process. A trust can help beneficiaries avoid estate-settling matters like probate and taxes.

The trustee is responsible for property administration and investment management in a traditional trust. This approach often results in a conflict of interest and can lead to higher investment fees for the trust.

Directed trusts are a powerful tool that separates these responsibilities and can offer greater flexibility, more targeted investments, and increased efficiency for the trustee. They are particularly useful for family trusts or multigenerational families with diverse or complex assets.

Flexibility

A revocable trust can include specific instructions on allocating assets to beneficiaries. This can be a powerful tool for estate planning as it allows for a more flexible distribution process that can change with the family’s needs. First, homeowners can take stock of their assets and document important information such as financial accounts, insurance policies, property deeds, and other personal items. They can also list possessions of significant sentimental value, such as family pictures. Once these documents are in place, the client can choose to have their advisors or trusted family members as administrative trustees while another advisor serves as investment fiduciary. This helps to separate duties, increase specialization, and create a high standard of care. 

Control

Your estate may be subject to several tax considerations depending on state laws and circumstances. Having a solid plan can help to minimize these impacts.

A comprehensive estate plan includes not only a will but also powers of attorney, living wills, trusts, and any other documents your financial professional deems necessary. These can make it easier for your family to access and fulfill your wishes after death.

The right trustee can make all the difference in keeping your legacy intact. In addition to a trusted family member or friend, a corporate trustee can provide continuity, expertise, and an