Law Office of Harvey L. Cox provides asset protection services from our offices in Waco and Round Rock, Texas.

Law Office of Harvey L. Cox provides asset protection services.

What do trust companies do?

On Behalf of | May 30, 2024 | Trusts

When managing your wealth and protecting your assets for future generations, trust companies play an important role. But what exactly do these financial institutions do, and how can they benefit you and your loved ones?

Understanding the role of a trust company can help you leverage their services to best suit your long-term financial goals.

Asset management

One of the primary roles of trust companies is managing the assets held within a trust. This involves making prudent investment decisions and protecting the assets so that they grow over time. Trust companies have teams of experienced professionals who specialize in various aspects of asset management, from investment strategy to risk assessment.

Trust administration

Trust companies are responsible for administering the trust according to the terms set forth by the grantor. This includes managing distributions to beneficiaries, keeping accurate records and ensuring that the trust remains compliant with all relevant laws and regulations. Trust companies act as objective third parties, carrying out the grantor’s wishes faithfully.

Beneficiary support

Trust companies also provide support to beneficiaries. This can include financial education, helping beneficiaries understand their rights and responsibilities and facilitating communication between beneficiaries and the trust. By offering this support, trust companies help ensure that beneficiaries can manage their inheritance responsibly.

Succession planning

Trust companies can also help your estate planning attorney with succession planning for businesses and family wealth. By working closely with grantors and their legal advisors, trust companies can help develop strategies for transferring wealth and ownership to the next generation, minimizing tax liabilities and ensuring a smooth transition.