Last Updated on January 31, 2024 by Asfa Rasheed

The most advisor-friendly trust companies prioritize collaboration and value relationships. They understand the intricacies of delivering seamless client experiences and are agile enough to adapt to changing landscapes. A trusted investment or financial advisor is often the best choice to manage a client’s trust assets, particularly in a directed trust. However, it is important to choose a trustee not interested in poaching those assets from the advisor. 

Flexibility 

Many trust service organizations are affiliated with banks or asset management firms that want nothing more than to funnel these accounts away from their advisors. But, some new players are agile enough to partner with, rather than compete against, advisors in serving their clients’ needs. 

The best advisor friendly trust companies prioritize their relationships with financial planners by dedicating one team to each advisory practice they serve. This gives the advisor a single point of contact responsible for communication and coordination. 

These trust companies understand that onboarding, distributions, and mediating disputes among beneficiaries are challenging. They also realize that they don’t need to offer investment management, as those services are better suited for the client’s financial advisor. This enables them to focus on a limited set of core functions and charge a flat trustee fee for their services. 

Reliability 

Unlike some trust services providers who work against financial advisors by trying to poach their client relationships after a death, advisor-friendly companies share the same goals and values as their financial advisory partners. This allows them to provide a streamlined client experience, eliminating confusion and miscommunication and reducing the chances of errors. 

When choosing an advisor-friendly trust company, looking for a specialized approach with a dedicated team of experts prioritizing your partnership is essential. This improves communication and efficiency, leading to a more positive client experience. This helps to create stickiness and a solid foundation for your ongoing relationship. 

Adaptability 

In a world where change is constant, adaptability is crucial. Adapting quickly can make the difference between success and failure, whether it’s a new technology, industry trend, or unavoidable community, political, or societal shift. 

An important component of adaptability is being able to come up with solutions. This means that instead of focusing on the reasons something can’t be done, being able to find a way to make it happen. 

For example, if you are a financial advisor, finding a partner that prioritizes client success and empowers you to create sticky assets is important. These firms separate trustee administration from investment management to eliminate conflicts of interest and focus on the client-advisor relationship. They understand the daily culture and strategic considerations that advisors face and can provide a seamless, personalized service. 

Collaboration 

Early on, people need to commit to collaborate. This means sharing information and providing ongoing input. With this, a multisector collaborative may stay within its goals and succeed. 

Advisor-friendly trust companies share this goal, working closely with financial advisors to meet client needs. They are not interested in funneling assets into their investment division or capturing commissions on managed accounts. Instead, they provide a seamless collaboration that simplifies the process for you and your clients. This is one of the key factors that makes a trust company “advisor friendly.” Learn more about selecting an advisor-friendly trust company by reviewing objective and subjective criteria, like philosophy, values and culture, adaptability, and willingness to support directed trusts. 

Transparency 

Financial planners need to be transparent with their clients. This can help foster trust and prevent any miscommunication or misunderstandings. However, transparency is a two-way street. Clients must also be transparent with their advisors to foster productive relationships. Advisers can utilize the services of a trusted advisor-friendly trust company to simplify estate planning for their clients while creating a recurring stream of high-quality, long-term revenue. This helps to ensure a consistent flow of income and provides peace of mind that client accounts will continue to be managed by their chosen investment or financial advisor even after death. When choosing a partner, look for a trusted advisor-friendly trust company with a shared mission that prioritizes collaboration and focuses on empowering financial planners. This way, both parties can benefit from a more streamlined process with better outcomes.