What Does A Institutional Trustee Do?

The institutional trustee’s role is to manage and distribute the assets in the trust according to your wishes, as expressed in the trust document. There are three primary elements to the trustee’s role:

• Custody – The custodial role is that of a financial secretary and security guard. The trustee must identify and then take title to the trust’s assets, keep accurate records, report to the current beneficiaries, execute and settle all transactions, protect and insure the property, and defend the trust against claimants. The trustee oversees the preparation of appropriate tax returns and all of the trust accounting in compliance with complex state and federal laws.
• Asset Management – The trustee is ultimately responsible for the preservation and investment of assets in the trust, ensuring that invested assets are productive and managed appropriately given the trust’s objectives. The trustee has the legal responsibility to reassess the objectives of the trust and current market conditions at least annually and to be sure that the investments match those objectives. Trustees will often hire professional managers to handle the day-to-day specialized activities such as securities investment or real estate management.
• Administration – The administrative role is central to carrying out your wishes regarding the use of assets in the trust. The trustee carries out your directions and follows your guidelines in handling the specific circumstances of each request for funds from trust beneficiaries. This involves legal interpretation of the language in the document, and appropriate input from family members. Experienced and unbiased trust administration is a vital component to implementing your plan.

Why Use An Institutional Trustee?

Trustees may have to make tough decisions that might not be popular with all your beneficiaries; after all, the trustee is carrying out your instructions, not your beneficiaries’ wishes. This can be a difficult role to fulfill for a family member, who may not be unbiased, or may wish to act in a manner that avoids hard feelings within the family, rather than carrying out your instructions. Also, few family members have investment management skills or expertise in fiduciary law and practice, and even if they do, the time, effort, and potential conflict mean they are often best used in an advisory role.

• Objective loyalty and independence to carry out your wishes
• Knowledgeable management, protection, and defense of trust assets
• Experienced oversight of the investment process may be carried out by your financial advisor
• Timely and accurate statements of the account to keep you and all current beneficiaries informed
• Consistent annual reviews
• Accountable collection and prudent distribution of income and assets
• Tax reporting, filing and comprehensive regulatory compliance on behalf of the trust

The Private Trust Company is an independent trust company dedicated to the management of trusts and other family wealth arrangements such as family offices, businesses, and foundations. The Private Trust Company dedicates its attention to serving the clients of LPL affiliated advisors. Through The Private Trust Company, LPL is able to deliver trust services and apply their high-quality service to every step of the trust management process.

Advantages of Choosing The Private Trust Company include:

• Experienced and knowledgeable trust officers with backgrounds in law, accounting, banking, investment management, tax and business
• Trust officers who are sophisticated professionals with objective family sensitivities
• Chartered as a National Bank devoted to trust services for families
• Regulated and examined by the Comptroller of the Currency, audited by independent auditors and bonded to protect your assets
• Able to provide trust services in all 50 states
• Designed to work with your LPL affiliated advisor as a team player which provides timely and accurate statements to you and your other advisors.
• Develops a written investment policy statement to provide clear understanding of your goals, objectives and guidelines for the trust
• Reviews accounts annually and revises investment policies as appropriate to reflect changes to the portfolio, client circumstances and markets
• Wholly owned by LPL Financial
• Serving the independent financial advisor since 1968
• Supports over 16,000 financial advisors
• Over 3,200 Branch offices
• Over $234 billion invested and managed annually
• Serving over 3.5 million clients

How do I get started?

• First, discuss what you are trying to accomplish with your financial advisor who can help to determine whether a trust may be right for you.  LPL Financial does not offer legal advise or legal services. We suggest you discuss your specific situation with a legal advisor.
• Have the trust document drafted by your attorney, incorporating sample language The Private Trust Company provides to ensure flexibility in using your choice of financial and family advisors to the trustee.
• Name The Private Trust Company as Trustee or Successor to the Trustee.
• Work with your financial advisor to set up a trust account at LPL and transfer appropriate assets into it.
• Enjoy the confidence that your wishes will be carried out.