Chicago-based Envestnet announced the launch of new technology to help RIAs and broker-dealers use trust accounts for wealth transfers.
The Envestnet Trust Services Exchange was created in partnership with Trucendent, a fintech dedicated to providing tools for advisors to strengthen their understanding and use of trusts.
“The seamless transfer of wealth to the next generation is a core element of financial planning for clients and their families,” said Bill Crager, co-founder and CEO of Envestnet, in released comments. “Advisors told us they wanted to be able to help clients navigate estate planning by using trust accounts that align with each client’s financial planning approach—and we listened.”
The new platform will integrate with Envestnet’s existing ecosystem, including Envestnet | Tamarac and Envestnet | MoneyGuide, to make it easier for advisors to integrate trust services into their processes, the company said.
A technology trust solution will make it so that advisors no longer have to foster third-party relationships with attorneys and trust administrators, as the Envestnet Trust Services Exchange’s network of attorneys and administrators can work with advisors to handle documentation, asset transfers and compliance, the company said.
After an account is opened on the platform, advisor, client, attorney and administrator can all work in concert via Envestnet’s technology, with the advisor maintaining custody of the client’s assets and thereby retaining control of the assets and the associated revenue, Envestnet said.
Envestnet also says the new service can help advisors capture new assets from clients who currently use other trust providers.