In a recent conversation with Scott Martin, the Managing Editor of Wealth Advisor, Christopher Holtby Co-Founder of Wealth Advisors Trust Company shed light on a crucial aspect of wealth management that often goes unnoticed yet is pivotal in the realm of estate planning – the management of revocable trusts.
Revocable trusts, also known as living trusts, are established by the creators of wealth, typically the family's patriarch or matriarch. These instruments function seamlessly while the creator is alive.
However, complications often arise posthumously, leading to potential legal disputes and challenges in asset management. Holtby emphasizes that about 30 to 40% of a successful advisor's book of business involves such trusts, highlighting their prevalence and significance in wealth management.
One of the key challenges in managing these trusts arises when the family patriarch or matriarch passes away. This transition period is fraught with potential conflicts and legal complexities, particularly when family members or close friends are designated as trustees. Although these familial trustees hold the same power and legal responsibility as institutional entities like Northern Trust, they often lack the requisite expertise and impartiality, inadvertently setting the stage for legal issues and conflicts within the family.
Holtby stresses the importance of documentation and clear communication in this context. Every trust distribution must be meticulously documented and communicated to the beneficiaries. This practice ensures transparency and reduces the likelihood of misunderstandings or disputes. The advisor plays a crucial role here, acting as a mediator and guide to both the trustee and the beneficiaries, ensuring that all parties are informed and that the trust's objectives are met.
Scott Martin highlights this as a quintessential example of an 'advisor-friendly' approach. In the world of wealth management, advisors are not merely financial experts; they are the quarterbacks of family finances, guiding and advising their clients through complex financial landscapes. The focus here is on retaining control and providing comprehensive support to both the trustees and the beneficiaries.
Here, Wealth Advisors Trust Company, co-founded by Christopher Holtby, plays an essential role. The company focuses 100% on making the professional lives of advisors using WATC trustee services easy and natural.
They are dedicated to offering white glove trustee services with some of the lowest account/trust officer ratios in the industry. They solve two key pain points for financial advisors - AUM retention and growth - with their trustee services. Their Trust Officers offer customized experiences, serving specific financial advisors and enhancing the advisor/client relationship.
Wealth Advisors Trust Company operates with a non-compete guarantee, ensuring that they work collaboratively with advisors. Their trustee services are designed to be efficient, with distributions occurring within 72 hours.
They also boast a robust infrastructure, including a team of in-house experts comprising CPAs, attorneys, certified financial planners, private wealth advisors, and certified trust and fiduciary advisors. Their trust accounting system integrates HWA and SalesForce, supporting both directed and delegated trusts. They have a remarkable 90% close ratio when competing against traditional trust companies, showcasing their effectiveness in the field.
To learn more about Wealth Advisors Trust Company, founded in 2008, you can access their Profile Page on The Wealth Advisor’s Digital Dashboard: HERE
To book a discovery call with WATC go HERE
