Transferring a trust is an underrated prospecting tool for financial advisors. Many clients are beneficiaries of an irrevocable trust and may not be satisfied with their current trustee. This is a huge opportunity for advisors to secure new assets under management.
During an annual review, financial advisors should find out whether their current clients or potential new clients are beneficiaries of an existing trust. An easy way is to take a look at your client's tax return to see if they have K-1 income. If they have K-1 income, and it is not from an investment the client holds with you, there is a good possibility it is from an outside trust. We have taken over as trustee for many trusts where beneficiaries are unhappy with their current trustee. Some common reasons we see clients and advisors transferring a trust to IconTrust include the following:
- A beneficiary is not compatible with their current trust officer.
- A beneficiary believes their current trustee fees are unreasonable.
- A beneficiary does not like the bank trust department model and would like more flexibility over their trust by choosing an independent trust company.
- A beneficiary would like to select the financial advisor to manage the investments inside the trust.
- A beneficiary does not like the trustee chosen by the Grantor and would like to feel empowered by choosing their trustee.
- A beneficiary resides in a high-income tax state and would like to move their trust to a jurisdiction that does not have a state income tax.
If you come across existing trust business, we can help facilitate the process of removing the current trustee, appointing IconTrust, and securing new assets under management for your business. We call transferring a trust the WIN/WIN/WIN solution:
- Win for the clients – They have a new trustee with potentially lower trustee fees and better customer service. They get to use their financial advisor to manage the trust assets.
- Win for the financial advisor - You have new assets under management and serve as the quarterback of the client/trustee relationship
- Win for IconTrust – We have a new client and advisor relationship.
Fill out our "Transferring an Existing Trust Checklist" and email a copy of the trust for review to email@example.com
Fill out our “Transferring an Existing Trust Checklist” and provide a copy of the trust for review.
IconTrust will review the trust document and determine the appropriate steps to remove the current trustee and appoint IconTrust, if possible.
IconTrust’s Trust Officer will coordinate with the client and the client’s advisors to implement documentation to change the current trustee.
Client will provide IconTrust with their current trustee’s contact information to initiate the transfer of assets to IconTrust. IconTrust will initiate contact with the prior trustee and attempt to expedite the transfer.
Client has a new trustee with an unbundled model that allows everyone a seat at the table in determining how the trust is administered at a reasonable price.