The Trust Industry – What You Need to Know

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The trust industry has experienced some changes in recent years. High interest rates and deregulation of the financial markets have led to increased investment by trustees in new instruments. These include certificates of deposit, money market funds, and variable-rate notes. These investments have spurred the growth of the trust industry, with money invested in trusts increasing from $571 billion in the late 1970s to over $1 trillion by 1986.

In response to the current environment, trust companies have been doing well. According to Wealth Advisor’s 2019 pricing survey, fees for many independent trust companies are on the rise. Additionally, net inflows and market growth have driven up assets under administration. As a result, trust industry revenues have remained stable over the last five years.

The trust industry needs more talent to meet this demand. To meet this need, many organizations are focusing on training new talent. One such organization is SDTA, which is led by Antony Joffe. This nonprofit organization aims to promote South Dakota as a trust situs and to collaborate with the Legislature. In addition, the organization supports education and philanthropic efforts in the community.

While banks and trust companies are expected to make profits, they are also required by law to serve the interests of the beneficiary. This means that the trustee has a legal obligation to do everything he or she can to protect the assets in the trust. This means that the trustee must perform his or her duties with great care and skill. Some of these duties include protecting the trust assets from outside parties, dispensing property to beneficiaries, and investing the assets prudently. The trustee must also maintain accurate records and provide the beneficiaries with timely accounting.

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