It's important for financial advisors to learn about trusts and discuss them with clients, Madsen stressed. "Talking knowledgeably about trusts can help advisors retain good family clients and help the advisors grow their book of business," he said.
Many families, not knowing where to turn, bring their trusts to a local bank. But if advisors take the time to ask clients if they're happy with how their trust is performing—perhaps as part of a routine annual review—they may well find the clients wish the advisor were managing the trust assets instead.
"Trusts can be very technical. They can seem scary. But the intricacies are solvable," said Madsen. "Financial advisors can help their clients make connections with skilled trust and estate lawyers."
And if the client wants the advisor to manage the trust's assets, that can be arranged, too, thanks in part to the new flexibility.