TD Ameritrade Institutional is partnering with National Advisors Trust Company FSB, an independent, advisor-owned trust company, to help advisors manage their clients’ trusts better, TD Ameritrade announced Wednesday.
Through the partnership, TD Ameritrade is creating Advisors Private Wealth Trust, a corporate trustee designed to enable advisors to better service clients’ trusts. The service is available to RIAs that custody assets with TD Ameritrade Institutional.
Designating a corporate trustee, such as Advisors Private Wealth Trust, can address what’s known as "successor trustee risk," which occurs when a new trustee takes over after the primary trustee dies. In such cases, trust assets often move from the independent advisor and into a local or national bank that is appointed as the successor trustee, TD Ameritrade says.
Independent advisors can improve their chances of retaining assets they manage by offering clients a trustee choice that also supports the independent investment management model of RIAs, says the firm. In addition, using a corporate trustee enables advisors to interact with the next generation of investors.
“As the baby boomers age, demand for trust services will only increase, particularly among high-net-worth investors. With Advisors Private Wealth Trust, RIAs can grow their businesses and gain a share of the wealth set to be transferred between generations,” says Jim Dario, managing director of product management and services at TD Ameritrade Institutional.