A Monthly Report on Trust News and Information
Choosing A Trustee A trust is often an important step toward fulfilling your financial goals and establishing a sense of order in your life. There are specific material advantages to having a trust: continuity of asset management, privacy, tax savings and more. Often the terms of the trust live on after you are gone. You cannot control changes in your family’s life or in the tax law, but you can choose a trustee that will respond to these changes. When selecting a trustee, you typically have three choices: An individual Common wisdom holds that you can save money and maintain control by appointing a person you know — one of your children, a close friend or relative — as trustee. You can also appoint a financial advisor. But, few individuals have the time, financial and legal knowledge, business expertise and resources to manage your trust effectively. Additionally, the individual who accepts may not understand or be ready for the personal liability that can arise from performing the trustee responsibilities. A local bank’s trust department A bank where you have your checking account may offer trustee services through its trust department. It may seem like a logical choice, the people are friendly and they are local. But, while the bank may be a convenient distance from your home or work, the trust department may be hundreds or thousands of miles away and the jurisdiction may not be the most favorable location in terms of tax laws, investment opportunities or other regulatory restrictions. The Independent Trust Company Independent Trust Companies arose from the joint desire of financial advisors to retain their client relationships after the primary decision maker died and the client’s desire to have their trusted investment advisor, attorney, accountant, and other professionals involved with their families at such a critical time.
How does this Partnership Between Advisors Work? Traditional banks and trust companies have separate departments for investment management and trust administration. The Trust Company-RIA Firm partnership simply separates investment management and trust administration into different companies. This arrangement makes National Advisors Trust a “directed trustee” and is called “bifurcation”.
BHWM provides the very best independent, objective, and personalized financial advice. We are true fiduciaries to your overall financial footprint. Our services include: Investment Management ccess to Institutional Capital A Markets Strategic and Tactical Portfolio Management rime Brokerage/International P Trading Retirement Planning Resources Tax Resources Professionally Managed Accounts Brokerage Agents Insurance and Annuities Cash Management, Margin, and Lending Charitable Services o-Branding of Partner C Strategies/Products Private Trust Services Alternative Investments Hedge Fund and Fund-of-Fund Access
What is a Directed Trust? Generally, a directed personal trust is one under which the grantor or beneficiary has the power to direct that the trust’s investments be managed by someone other than the trustee. Under a directed trust arrangement, the trustee performs all other important functions necessary to carry out the terms of the governing trust agreement, including having frequent and necessary communications with the beneficiaries, but refrains from commenting on the investments.
What is the Advantage? You are able to specify that your investment advisor directs National Advisors Trust, you get the continuity you want for your family in both investment philosophy and the people. The service is delivered at the same cost or less than the national bank model, but on a local level. This provides the best of both worlds – the comfort and stability of a regulated financial institution to
9454 Wilshire Boulevard, Ste 710, Beverly Hills, CA 90212 877-511-WEALTH www.BHWM.com
TRUST | SIMPLICITY | EXPERIENCE
serve as trustee and the broader benefits of being able to choose from a wide universe of investment advisors with extensive research capabilities and contrasting investment styles.
About Us Beverly Hills Wealth Management, LLC operates as
The National Advisors Trust Company Advantage
a Registered Investment Advisory firm for high net
With a federal charter authorizing it to act in all 50 states and offices in Kansas and Missouri National Advisors Trust Company, FSB can act in a jurisdiction that offers the most benefit to your family. Even if the trust administration is across the country due to a tax, creditor or other statutory benefit, because National Advisors Trust works with your local advisor, so does your family.
with clients to set goals, develop personalized strategies,
How is the relationship established? You designate your chosen financial advisor as the trust Investment Advisor and National Advisors Trust as trustee under the governing document (the trust) or for existing irrevocable trusts we will work with your advisors to find a solution for transfer.
Trustee Options Administrative Trustee Family squabbles, distrust and disharmony often occur when one family member is designated to manage the post death division of assets. To avoid this devastating consequence, you can name National Advisors Trust as the Administrative Trustee. This is a temporary arrangement whereby the professional party steps in to manage the estate administration process and steps out after the assets are divided and distributed among the designated heirs. Interim Trustee Choosing an arbitrary age at which a child or other heir is sufficiently “mature” to handle an inheritance is falling out of favor. Why? We’ve all seen the consequences of sudden wealth on people that do not have prior wealth management experience. It doesn’t matter the age, if a child has not managed wealth of his or her own over the years, it is logical to assume that they won’t know what to do with their inheritance. Instead of a predetermined age at which a child receives his or her inheritance, many families choose a designated time line. You can designate National Advisors Trust and your trusted financial advisor to act as your child’s advisors for a designated period of time, such as 2-5 years after your death. This gives your child time to learn from your trusted advisor about investments, form a relationship with the advisor and have expert advice on how to manage his or
worth individuals, families, and businesses. We work and practice ongoing portfolio reviews. We simplify the process, helping our clients reach their financial objectives in a way that they can completely understand. Our Wealth Management Advisory team is skilled and experienced in planning for, adjusting to, and managing all types of financial scenarios. Our firm was founded on the philosophy that when seeking a financial advisor, clients should demand three basic elements: trust, simplicity, and experience. her trust. After the designated time, National Advisors Trust “steps out” as trustee. Your child chooses whether to retain the investment advisor. Forever Trustee Some heirs will never be able to manage wealth due to inexperience, disability, or other reasons. National Advisors Trust can serve as “forever” trustee for those family members with such issues. Co-Trustee To give an heir or family member more input, but maintain professional management of trust assets and oversight of trust distributions, you can name National Advisors Trusts as co-trustee with a family member or heir. Agent for Trustee If you have been appointed as a trustee for a family member or friend, National Advisors Trust can serve as your “sounding board”, providing input on trust distribution decisions and the laws of which you should be aware and follows. For more information or assistance, please contact us at:
Beverly Hills Wealth Management Private Trust 9454 Wilshire Boulevard, Ste 710 Beverly Hills, CA 90212 877-511-WEALTH www.BHWM.com
BHWM Private Trust is a division of National Advisors Trust, FSB