Trust Company That Works With RIAs: What Advisors Should Look For
As clients' planning needs become more sophisticated, registered investment advisors often work alongside trust companies to support estate planning and fiduciary administration. Choosing a trust company that works with RIAs involves more than identifying a trustee. Advisors often seek a collaborative relationship that allows each professional to focus on their respective responsibilities while continuing to serve the client's long-term goals.
Many RIAs prefer a trust company that complements, not replaces, the advisor relationship. In this model, the advisor continues providing investment management and financial planning while the trust company serves as trustee and administers the trust according to its governing document.
Key trust services may include:
Trustee and successor trustee services
Trust administration
Fiduciary oversight
Beneficiary distribution administration
Estate settlement support
Trust reporting and recordkeeping
Members Trust Company is one example of an independent trust company that works with RIAs through a collaborative fiduciary model designed to support ongoing advisor relationships.
Collaborative Trustee Relationships
A successful trustee relationship is built on clearly defined responsibilities.
In many trust arrangements:
The RIA manages investment portfolios when authorized.
The trustee administers the trust according to its governing terms.
Estate planning attorneys prepare legal documents.
Tax professionals provide tax guidance.
This collaborative structure allows each professional to contribute within their area of responsibility while supporting the client's broader estate planning strategy.
Members Trust Company works alongside RIAs as part of this coordinated planning process.
Understanding Directed Trustee Relationships
Some trusts are structured as directed trusts. In these arrangements, the trustee and the investment advisor have distinct responsibilities established by the trust document and applicable law.
While specific responsibilities vary, a directed trustee may:
Administer the trust
Maintain trust records
Carry out fiduciary and administrative responsibilities assigned to the trustee
Coordinate with the investment advisor and other professionals
This structure allows advisors to continue managing investments when authorized while the trustee focuses on trust administration.
Investment Flexibility Within a Collaborative Model
Many RIAs value the ability to continue managing client portfolios after trust assets are transferred into a trust structure.
When appropriate and consistent with the governing trust document, a collaborative trust relationship can support continued investment management by the client's advisor while the trustee carries out fiduciary and administrative responsibilities.
Members Trust Company offers trust services that are designed to work with independent advisors, helping preserve established advisory relationships through coordinated trust administration.
Fiduciary Responsibilities Remain Distinct
Although RIAs and trustees work together, their responsibilities are different.
An RIA may focus on:
Investment management
Financial planning
Client relationship management
A trustee is responsible for:
Administering the trust according to its terms
Acting in a fiduciary capacity
Managing beneficiary distributions
Maintaining trust records
Coordinating trust administration
Clearly defined responsibilities help support effective collaboration while maintaining appropriate fiduciary oversight.
Frequently Asked Questions
What is a trust company that works with RIAs?
A trust company that works with RIAs provides trustee and fiduciary services while coordinating with registered investment advisors who continue managing client relationships and, when appropriate, investment portfolios.
What is a directed trustee relationship?
A directed trustee relationship separates trustee responsibilities from investment management responsibilities according to the trust document and applicable law.
Can RIAs continue managing investments after a trust is established?
Depending on the trust structure and governing documents, an RIA may continue managing investments while the trustee administers the trust.
How does Members Trust Company work with RIAs?
Members Trust Company provides independent trustee and fiduciary services that complement the client relationships established by registered investment advisors while administering trusts in accordance with their governing documents.
Conclusion
Choosing a trust company that works with RIAs involves evaluating how well the trustee supports collaboration, fiduciary administration, and advisor relationships. Independent trust companies such as Members Trust Company work alongside RIAs through collaborative and, when appropriate, directed trustee arrangements that allow each professional to fulfill their respective responsibilities within the client's estate planning strategy.
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.
