Conshohocken, PA -- (SBWIRE) -- 11/04/2014 -- Sterling Trustees is a trust administration firm that offers unbiased trust management services aimed at sustained asset preservation and success. They operate out of Sioux Falls, South Dakota with a client base that extends around the world. This November, they offer some insight toward the importance of hiring an independent trustee—like Sterling Trustees—for trust management services, regardless of the magnitude of the trust.
Using an independent trustee enables individuals more flexibility and removes any conflict of interest that is present today at most trust companies that act as both the trustee and investment manager. Independent trust companies offer two models that the client can select depending on their own facts and circumstances. These two models are the directed and delegated trust. In the directed trust model, the trustee takes directions from other third parties who are assigned various roles within the trust document. One of the most important roles is that of investment advisor. They have sole fiduciary responsibility for managing the assets while the trustee remains responsible for administering the trust.
Some investment advisors are fearful of outside trust companies due to the risk that they may lose asset management mandate. A directed trust can remedy this conflict. This is the belief of Scott Martin, senior editor of “The Trust Advisor”. Martin explains in a recent article, “the client assigns the right to manage the assets to an advisor, usually the one he or she is already working with…the trust company does what it does best: run the trust.”
Martin continues to say that clients are happier having advisors look out for their “ultimate best interests.” According to Martin, advisor-friendly trust companies get new trust accounts, and the advisor benefits as well. Sterling Trustees is proud to be very advisor-friendly.
Some clientele may prefer for the trustee to have full fiduciary control of their assets, but delegate the investment management to best of breed third party managers to manage. These delegated trusts can offer clients great security as both the trustee and investment advisor are responsible for any gross negligence or fraud that may occur on the investment management side. However, an investment advisor pointing a client in this direction will risk loss of asset control. This is especially true when they are not delivering satisfactory service. However, leading a client to a successful independent trustee is great publicity for investment advisors, which has no price tag.
If an investment advisor is completely unwilling to bring in third party trust companies, a client should review the efficiency of their investing and money management and question whether their loyalty is to the client or to his/her own bottom line. Sterling Trustees provides trust management services with professionals that are held to a higher standard of fiduciary responsibility. Their cutting-edge technology provides critical real-time investment monitoring and more.
To contact Sterling Trustees, call the South Dakota trust company today at 605-593-8950. They can also be reached via e-mail at info@sterlingtrustees.com
About Sterling Trustees
Sterling Trustees is a fee-only trust administration organization in Sioux Falls, South Dakota. By working independently, the firm allows its clients to avoid the extra costs and conflicts of interest associated with large financial institutions. Sterling Trustees’ main goal is to keep assets safe while remaining objective.
For more information visit http://www.sterlingtrustees.com/