The selection of a trustee is a critical decision to make in the financial and estate planning process, yet the decision is made frequently out of convenience or tradition. Often overlooked is the professional competence of a trustee to represent the stated interests of a trust and to exercise all of the required fiduciary duties that must be performed economically and without bias. National and regional bank-holding companies and family or friends handled a trusts. But the emergence of independent trust companies has challenged the traditional sources of trust administration and investment services for the following reasons:

• An independent trust company has the autonomy and ability to exercise decisions and manage a trust in light of the governing document for all beneficiaries without the conflict of corporate interests often associated with mega-banks. This is the essence of what a corporate, independent trustee is all about.


• An independent trust company is focused on a single business and is staffed with experienced professionals who are dedicated to building and sustaining a close, personal relationship with their clients, their family members, and their professional advisors. Independent trust companies believe in partnership.


• An independent trust company is a regulated entity, and it must operate according to statutes that govern capital requirements and actions that fulfill the interests of a trust. Professional trustees are trained and experienced in performing the duties of a fiduciary. Often a family member or friend does not meet these requirements and is ill prepared to perform the duties of an unbiased trustee.


• An independent trust company exercises the wishes and direction of a grantor to work closely with that grantor’s attorney, accountant, or other appointed professional to help prepare a trust document that is absolutely aligned with the grantor’s intentions and financial situation.
  


• An independent trust company will avoid “cookie-cutter” services and offer flexibility with a high degree of customization of administrative services to meet a client's special needs. They take their responsibilities seriously, and routinely exercise their authority on behalf of their clients’ best interests.

Save Time & Expense

A client can save money with an independent trust company. Many of the professional services an individual would have to hire can be performed by knowledgeable trust professionals who can address many of the questions a person would have in creating a trust document. This is not to say that an attorney is not required in drafting the trust documents. They are, but up-front discussions with a professional trustee can save time and expense and benefit the trust creation process before an attorney completes the final document.

Security and asset safety is another reason to consider a professional trustee. Independent trust companies are held to the highest standards of conduct and are subject to comprehensive regulatory oversight. Additionally, client assets are not co-mingled with the capital of the trust company. Dual controls guide the management and distribution of client funds, and a trustee has a legal obligation to oversee the investment portfolio to ensure assets are managed according to client objectives and needs.

Finally, an independent trust company is an organization of individuals. An organization that, by its very definition and mission, is to oversee and ensure the client’s wealth is managed and administered as intended. An independent trust company provides continuity from one generation to the next. Most independent trust companies are staffed by professionals who have already demonstrated competence in the fiduciary management business and this experience is a tangible benefit that can not be ignored. Furthermore, the management of independent trust companies typically have a financial commitment to the company and this vested financial interest ensures stability.

Summary

The appointment of a professional trustee is a decision to be made carefully and with thought. The pros and cons of employing a family member or a mega-bank that offers trust services as part of their menu of services is to be weighed against the benefits and clear purpose that independent trust companies offer. When confronted with this decision, ask yourself who is best positioned to represent your intentions and interests as the routine function of their daily business. An independent trust company is an objective and professional partner to achieve your wealth preservation and peace of mind.

Beth Brandt, Mark Iverson and Mike Lammers

Administrative Team

Mike Lammers is Senior Vice President and Chief Trust Officer for Investors Independent Trust Company. He has over 22 years of experience in the financial services industry serving as department manager and trust account administrator.

Mark Iverson is Vice President and Trust Officer for Investors Trust. Mark has extensive experience, broad product knowledge and strong technical expertise in managing and developing trust relationships. He has over 18 years of trust experience.

Beth Brandt is Trust Administrative Assistant. Beth has over 11 years of experience in legal and fiduciary services. She began her financial services career with Merrill Lynch in 1990 where she worked as a Senior Legal Assistant.

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