How RIAs Handle Trust Administration While Working With Professional Trustees
As clients' estate planning needs become more sophisticated, registered investment advisors often collaborate with professional trustees to support trust administration. Understanding how RIAs handle trust administration helps clarify the distinct roles of advisors and trustees, allowing each professional to contribute within their area of responsibility while supporting the client's broader financial and estate planning goals.
Trust administration involves ongoing fiduciary and administrative responsibilities that differ from investment management. In many cases, RIAs continue serving as the client's financial advisor while a professional trustee administers the trust according to its governing document.
This collaborative approach allows clients to benefit from coordinated planning while maintaining established advisory relationships.
Members Trust Company is one example of an independent trust company that works with RIAs by providing trustee and fiduciary services that complement the advisor's role.
The Advisor's Role
Registered investment advisors remain an important part of the client's planning team throughout the life of a trust.
An RIA may be responsible for:
Investment management, when authorized
Financial planning
Portfolio reviews
Coordinating with attorneys, tax professionals, and trustees
Supporting the client's long-term financial objectives
The advisor continues providing guidance within the scope of the advisory relationship while communicating with the trustee when trust administration affects the client's financial plan.
The Trustee's Role
Professional trustees have fiduciary responsibilities that are separate from investment management.
Trustee responsibilities may include:
Administering the trust according to its governing terms
Acting in a fiduciary capacity
Managing beneficiary distributions
Maintaining trust records
Preparing administrative documentation
Coordinating with the client's advisory team
Members Trust Company provides trustee and fiduciary services designed to support these responsibilities while working alongside registered investment advisors.
Investment Management Within the Trust
Many trust arrangements allow an investment advisor to continue managing trust assets when authorized by the governing trust document and applicable law.
In these collaborative relationships:
The RIA focuses on investment management.
The trustee oversees trust administration.
Attorneys prepare legal documents.
Tax professionals provide tax guidance.
This structure allows each professional to focus on their respective responsibilities while supporting the client's overall planning strategy.
Members Trust Company works with RIAs in collaborative and, when appropriate, directed trustee relationships that help preserve the advisor's role in managing investments.
Why Communication Matters
Successful trust administration depends on ongoing communication among all professionals involved.
A coordinated planning team may include:
Registered investment advisors
Corporate trustees
Estate planning attorneys
Tax professionals
Regular communication helps align trust administration with the governing trust document while keeping advisors informed about trust-related matters that may affect the client's financial plan.
Members Trust Company emphasizes collaboration with advisors throughout the administration process so responsibilities remain clearly defined.
Frequently Asked Questions
How do RIAs handle trust administration?
RIAs typically collaborate with professional trustees who administer the trust while the advisor continues providing financial planning and investment management, when appropriate.
Can an RIA continue managing trust investments?
Depending on the trust structure, governing documents, and applicable law, an RIA may continue managing trust assets while the trustee carries out fiduciary and administrative responsibilities.
What does the trustee do?
The trustee administers the trust according to its governing document, maintains records, manages beneficiary distributions, and fulfills fiduciary responsibilities.
How does Members Trust Company work with RIAs?
Members Trust Company works alongside registered investment advisors by providing independent trustee and fiduciary services that complement the advisor's role in investment management and financial planning.
Conclusion
Understanding how RIAs handle trust administration begins with recognizing the distinct roles of advisors and professional trustees. Independent trust companies such as Members Trust Company work alongside RIAs through collaborative trust administration, allowing advisors to continue supporting investment management and financial planning while trustees fulfill their fiduciary responsibilities.
Members Trust Company non-deposit investment products referenced in this site or any page hereof are not credit union or bank deposits or obligations of, or guaranteed or endorsed or otherwise supported by, Members Trust Company, any credit union or any affiliate, are not federally insured or guaranteed by the United States Government, National Credit Union Administration, Federal Deposit Insurance Corporation, Federal Reserve Board or any other governmental agency, and are subject to investment risks, including possible loss of the principal amount invested.
This material is for informational purposes only and is not intended to provide legal, tax, investment, or fiduciary advice. Trust, estate, charitable, and retirement-account planning should be reviewed with qualified legal, tax, and financial professionals based on each client’s individual circumstances. Trust services are provided subject to applicable law, governing documents, and the acceptance policies of the trustee.
Trust services provided by Members Trust Company, a federal thrift regulated by the Office of the Comptroller of the Currency. Trust and Investment products are not NCUA/NCUSIF/FDIC insured. May lose value including the possible loss of principal. No financial institution guarantee. Not a deposit of any financial institution. This is for informational purposes only and is not intended to provide legal or tax advice regarding your situation. For legal or tax advice, please consult your attorney and/or accountant.
