In the trust company industry, many firms compete with their advisor partners for investment management, but ITC (Independent Trust Company) takes a dramatically different approach. The South Dakota–chartered trust company has built its business model around being a genuine partner to financial advisors, eschewing the conflicts of interest that often make advisors wary of traditional trust relationships.
In an interview with The Wealth Advisor’s Scott Martin, Mark Mabry, Business Development Specialist at ITC, discussed how the firm’s commitment to independence and advisor partnerships drives its business model and service approach to create lasting, conflict-free relationships with financial advisors.
A Focused Business Model
ITC’s business philosophy centers on maintaining clear boundaries between trust administration and investment management.
“We think that it’s a conflict of interest to be both the financial advisor and the trustee,” explains Mabry. “So, we stick to what we’re good at. We like the Chick-fil-A model where we don’t make cheeseburgers, we just make chicken sandwiches. We just do the trust work, let the advisor do the advising, and we go from there.”
The laser focus on trust administration, rather than trying to expand into fintech, custody services, or relationship management, sets ITC apart in an industry where business models often shift over time, potentially leaving advisors and their clients in difficult positions.
Multi-Custodial Flexibility
ITC’s approach concentrates on a “multi-custodial, multi-RIA approach,” Mabry says, allowing them to work seamlessly with investment advisors while letting those advisors maintain control over product selection. The company collaborates with advisors to establish investment objectives but maintains strict boundaries around its role. The flexibility enables advisors to continue using their preferred custody platforms and investment solutions while ITC is dedicated solely to trust administration.
Dual Model and Asset Protection Advantages
One of ITC’s key differentiators is its ability to leverage South Dakota’s favorable trust laws. As Mabry explains: “Being chartered out of South Dakota allows for the directed and the delegated model where these advisors can also get written into the trust document and the directed model.”
In the delegated model, advisors bring relationships to ITC, which then appoints the same advisor while assuming the risk related to performance and the advisor’s actions. The directed model, however, offers a different approach where neither ITC nor the advisor bears the risk, and the grantor can explicitly write the advisor into the document, helping secure the advisor’s book of business.
The flexibility is particularly valuable because many trust documents, especially those drafted outside South Dakota, may not account for these options. Many attorneys outside the state default to using the traditional delegated model simply because they’re unfamiliar with the directed trust option, which can limit advisors’ ability to secure their long-term relationship with the trust. The adaptability, combined with South Dakota’s strong asset protection statutes, makes ITC particularly attractive for complex planning needs.
“South Dakota offers the best asset protection statutes in the nation,” Mabry notes. “Over half of the prospective clients that we’re working with right now are asset protection trust, where they’re saying, ‘Hey, I have $10 million, $20 million in real estate that I can still control, whatever it may be, but I want it out of my name.’”
The combination of flexible trust models and strong asset protection makes ITC an ideal partner for advisors working with high-net-worth clients who need both relationship continuity and asset security.
Family Office–Style Service Model
ITC has structured its service delivery to mirror a multifamily office approach, providing each relationship with a dedicated three-person team: a trust analyst (also known as a trust officer in the industry), relationship manager, and operations person. This structure enables ITC to handle complex assets that many larger institutions might shy away from.
“We’re set up more like a multifamily office than we are a trust company,” Mabry says. “So, when you get here, you’re going to get a little bit more of a customization of services, so we can handle those unique assets.”
Unlike many larger institutions that avoid complex assets such as rental property portfolios, ITC embraces these challenges, providing comprehensive administrative support for diverse asset types. The flexibility makes ITC particularly valuable for advisors serving business owners and real estate investors.
Technological Edge
The company’s ability to maintain a high-touch service model while handling complex assets stems from its proprietary software platform, developed over the past decade. The technology enables ITC to operate at higher profit margins than traditional trust companies while maintaining superior service levels.
“Most of the time, you have one trust officer managing 200 relationships, and if that guy leaves after 10 years, or heaven forbid, they go on a vacation once a year, you have 200 families kind of clamoring at them,” Mabry explains. “With our model of three, you’ll always have that service rolling in.”
The team-based approach, supported by ITC’s proprietary technology, ensures consistent service delivery and eliminates the single points of failure that often plague traditional trust companies.
The Value of Independence
For advisors concerned about relationship security, ITC’s commitment to independence provides peace of mind. Unlike trust companies that may initially respect advisor relationships but gradually seek to assume investment management responsibilities, ITC maintains strict boundaries.
Many trust companies provide internal investment products and advisory services, creating potential conflicts of interest that can threaten advisor relationships over time. ITC’s singular methodology eliminates these concerns, allowing advisors to sustain their client relationships with confidence. The commitment to independence remains a cornerstone of the company’s business model, delivering long-term stability for advisor partnerships.
Commitment to Service
ITC demonstrates its commitment to service through its accessibility and onboarding process. The company operates 24/7 and takes a thorough approach to building new relationships, typically involving the trust analyst team early in the sales cycle to ensure familiarity and smooth onboarding.
For financial advisors seeking a trust partner that truly understands and respects their role, Independent Trust Company offers a compelling combination of independence, expertise, and service capability. The company’s focused approach to trust administration, coupled with its technological capabilities and family office–style service model, positions ITC as a valuable partner for advisors looking to serve their clients’ trust needs while maintaining control of their relationships.
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