Selecting the right fiduciary helps your client — and you.
Many advisors are indifferent to their client’s choice of trustee. However, these advisors may be doing their clients a disservice, given the immense impact the trustee has on the well being of both the client and the advisor.
IMPACT ON THE CLIENT: Many clients don’t really know how to find the most suitable trustee, let alone what qualifications to look for. And ask any family saddled with a trustee who is not a fit: it is a curse come true.
The experts — those who have helped families thrive for generations — consistently identify so-called holistic or generative trust administration as the best practice. And that’s not just best for family happiness, but also best for the longevity of financial assets as well.
The fit of the trustee includes a range of items. One includes their business model: if based on the amount of assets under management, they have a built-in disincentive to distribute funds where they should.
IMPACT ON YOUR PRACTICE: Some trustees are out to replace you with their own team. And if you’re no longer there, the client’s family has lost a loyal, caring and effective support. Only those trustees employing open architecture or unbundled services are structured to be your collaborator, and not your competitor. Further, a trustee who addresses inter-generational harmony is more likely to work you into the next generation.
Experienced trustees tend to be more meticulous, and so tend to produce additional work for you. While a family member could simply put his head in the sand over a need for your further service, we are more likely to hire you to add value as appropriate.
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