What is a Delegated Trust?

Trusts are ways that a third party can hold equity for someone else. A trust company can help as the account gets more deposits on behalf of the trustee. When you start to look into the trust options, you will see that you have many to choose from. Let’s take a look at delegated trusts, and how they work.

What is a Delegated Trust?

A delegated trust is a little bit different from the other trust options because the trust company has some influence over the trust. An advisor may be appointed to be in charge of the investment decisions that are made for the trust. The best trust companies will help you to figure out the financial course of action that needs to be taken for the account.

Benefits of a Delegated Trust

According to LegalZoom, 77% of Americans believe that estate planning is important, regardless of wealth. One of the ways that you start your estate planning is to look for a trust company like Peak Trust, which can help you set up a delegated trust.

The benefit of this is that you are able to build more value in your trust. With a delegated trust you are able to have the help of a professional who will make important investments. These investments increase the value of the trust in a way that you wouldn’t have before.

Trustee Control

Although the trustee appoints an advisor to watch over the financials of the trust, they still maintain control. This means that if the trustee decides that they want to use a different advisor, they have the power to make the change. While the advisor makes the investments, it’s the job of the trustee to watch over them.

While the advisor is making the investment decisions, the trustee will still be responsible for the contributions to the account. Finally, the decisions that need to be made regarding distribution are the responsibility of the trustee.

Overall, there are a lot of things that you need to think about before you open a delegated trust. We are always here to answer any further questions that you may have and strive to make the experience easy for everyone to understand.