Why RIAs Choose a Trust Company That Works Alongside Their Firm
As clients' estate planning needs become more sophisticated, many advisory firms look for ways to provide trust services without changing how they serve clients. A trust company that works with RIAs can complement an advisor's existing relationship by providing fiduciary administration while allowing the advisor to continue delivering financial planning and investment management. This collaborative approach helps address trust administration needs while keeping each professional focused on their respective responsibilities.
Clients often build long-standing relationships with their financial advisors. When a trust becomes part of the estate plan, many advisors prefer a trustee that works alongside their firm instead of replacing the existing relationship.
In a collaborative model:
The RIA continues serving as the client's primary financial advisor.
The trust company administers the trust.
Attorneys prepare estate planning documents.
Tax professionals provide tax guidance.
Members Trust Company follows this model by working with registered investment advisors while supporting continuity throughout the trust administration process.
Improving Operational Efficiency
Trust administration involves ongoing fiduciary and administrative responsibilities that differ from investment management.
These responsibilities may include:
Trustee and successor trustee services
Trust administration
Beneficiary distribution administration
Trust reporting and recordkeeping
Estate settlement support
By working with an independent trust company, RIAs can introduce trust services without establishing an internal trust department.
Members Trust Company provides these fiduciary services while coordinating with advisors and other professionals involved in the client's estate plan.
Supporting Team-Based Planning
Estate planning often requires collaboration across several disciplines.
A coordinated planning team may include:
Registered investment advisors
Estate planning attorneys
Tax professionals
Corporate trustees
Each professional contributes a different area of responsibility. Advisors continue managing financial planning and investments when appropriate, attorneys draft legal documents, tax professionals provide tax guidance, and trustees administer the trust according to its governing document.
Members Trust Company works within this collaborative framework by coordinating with advisors throughout the trust administration process.
Scaling Trust Capabilities
As advisory firms grow, clients may present increasingly complex estate planning needs. Working with an independent trust company allows RIAs to expand access to trust services while maintaining their existing business model.
Depending on the client's circumstances, trust services may include:
Trust administration
Fiduciary oversight
Trustee and successor trustee services
Beneficiary administration
Estate settlement support
This collaborative structure allows advisors to continue focusing on planning and investment management while trust administration is handled by the trustee.
Members Trust Company supports this approach by providing independent fiduciary services designed to work alongside RIAs.
Clearly Defined Responsibilities
Successful trust relationships begin with clearly defined roles.
Typically:
RIAs focus on financial planning and investment management.
Trustees administer the trust according to its governing terms.
Attorneys prepare legal documents.
Tax professionals provide tax guidance.
Maintaining these distinct responsibilities supports effective communication among the professionals involved in the client's planning process.
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 serving clients through financial planning and investment management.
Why do RIAs partner with trust companies?
Many RIAs partner with trust companies to provide access to trustee services and trust administration without creating an internal trust department.
Can advisors continue managing client relationships?
Yes. In many collaborative arrangements, advisors continue serving as the client's financial advisor while the trust company administers the trust according to its governing document.
How does Members Trust Company work with RIAs?
Members Trust Company provides independent trustee and fiduciary services that complement the relationships registered investment advisors have with their clients while administering trusts and supporting estate settlement responsibilities.
Conclusion
Choosing a trust company that works with RIAs can help advisory firms support evolving client needs through collaborative trust administration. Independent trust companies such as Members Trust Company work alongside RIAs by providing fiduciary services that complement existing advisory relationships and support coordinated estate planning.
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.
