Appointing an investment adviser or a trust company to administer your trust and provide asset management is a decision that is based on several considerations. Not only is the adviser and company’s reputation for excellent service a key factor but you want to rest assured that your assets are properly accounted for and will remain safe under custodial care.
Evaluation Of Services
To alleviate any concerns about the safekeeping of your trust assets, be sure to find an investment advisor or corporate trustee that offers the following services:
Custody of my assets
Personal, hands-on service delivery
Electronic statements (minimum quarterly issuance)
Online, real-time portfolio/account access
Capital changes/corporate action reporting
Automated cash management
Subjected to annual audits
A trust company or investment advisor that places the focus on exceptional customer service, backed by strict security protocols and technological measures to provide you with accurate information, is who you want to entrust your assets with.
Safeguarding of Assets
Partner with a corporate trustee who will secure your non-brokerage assets electronically through a membership with a reputable depository, such as The Depository Trust Company (DTC). Having assets stored electronically with a depository results in no fees incurred unlike when assets are physically transferred.
The DTC is one of the largest securities depositories in the world that presently provides custody and asset servicing for over $37.2 trillion. A DTC member will have access to a full range of safekeeping and processing services based on the type of asset, or securities being transferred by the company to the DTC.
Another point to discuss with a corporate trustee or investment advisor is whether they are SEC-registered. Advisors who are registered with the Securities Exchange Commission are mandated to follow a “custody rule”. This rule provides additional protection for investors against SEC-registered advisers who would misappropriate funds or commit theft.
Monitoring Your Assets
Before deciding on who will serve as custodian or trustee for your assets, first ask questions in relation to their asset custody arrangements. Despite legal and procedural safekeeping methods that are in place, it remains up to you to review account statements that are sent by the investment company or corporate trustee and monitor your assets.
Any discrepancies that you note concerning any account transactions should be directed to the investment advisor, corporate trust company or custodian or further investigation and appropriate resolution. Although investment advisors and corporate trustees are mandated to serve in the best interests of their clients, no one should be more concerned about the safekeeping of your assets 一 than you.
About Caldwell Trust Company
Caldwell Trust Company is an independent trust company with offices in Venice and Sarasota, Florida. Established in 1993, the firm currently manages over $850 million in assets for clients throughout the United States. The company offers a full range of fiduciary services to individuals, including services as trustee, custodian, investment adviser, financial manager and personal representative. Additionally, Caldwell manages 401(k) and 403(b) qualified retirement plans for employers.