Preparing for Tomorrow with the Support of HFA & Charles Schwab Trust Company of Delaware

Philip GagliardiMarch 18, 2016

Estate Planning

We are constantly speaking to our clients about all aspects of financial planning. During our estate planning discussions, two questions come up:

  1. Do I need to establish a trust?
  2. If so, who should I name as my trustee?

The answer to the first question is usually the same. We would want to get your estate planning attorney involved and if you don’t have one we would be happy to introduce you to a few.

The second question is a little bit trickier. The options are either to have an individual serve as trustee or to name a corporate trustee to serve. There are benefits to both. Each situation is different so it would really depend on what your overall goal of the trust is. If, after reviewing your situation, you and your estate attorney agree that using a corporate trustee makes the most sense, then we can help provide you with a solution.

The purpose of this blog is to explain one of the many benefits that our relationship with Charles Schwab provides and introduce you to Charles Schwab Trust Company of Delaware (CSTCD).

CSTCD’s Administrative Trustee Services, coupled with the relationship you have with Hoover Financial Advisors (HFA), offers you:

  • The benefit of knowing that HFA is overseeing the investment of your trust assets
  • A wide array of administrative services with CSTCD as your trustee

Selecting an Administrative Trustee

Choosing an administrative trustee is an important decision that can have significant advantages for designated beneficiaries. A trustee is responsible for administering trust assets in accordance with the trust agreement. With CSTCD acting as trustee, you benefit from:

  • Specialized knowledge – CSTCD has the professional knowledge to administer the complexities of a trust so that HFA can focus on managing the financial trust assets.
  • Continuity – As a corporate entity, CSTCD can manage the trust beyond the lifespan of individual family members, so that the trust requirements can be executed consistently over generations.
  • A full range of services – Accounting, recordkeeping, collection of dividends/interest, distribution of income/principal, and preparation and filing of federal and state fiduciary income tax returns.
  • Trust expertise – The ability to act as administrative trustee on a variety of trust types, such as revocable trusts, testamentary trusts, and marital trusts.

Roles and responsibilities

Grantor – Selects your chosen independent advisor; hires and names CSTCD as administrative trustee in your trust document.

HFA – Is the primary relationship manager with you and/or your trust beneficiaries and handles all discretionary investment management of trust assets.

Charles Schwab Trust Company of Delaware – Is the administrative trustee and manages the administration of the trust according to the trust instrument.

Schwab Advisor Services™ – Provides services and support to your investment advisor.

Frequently asked questions

  • What is a trust?
    • A trust is a legal relationship in which one or more persons or entities (trustee[s]) hold legal title to property and manage it for the benefit of one or more persons or entities (beneficiary/beneficiaries).
  • Why establish a trust?
    • A trust can potentially accomplish a wide variety of objectives:
      • Providing management of trust assets on behalf of beneficiaries
      • Minimizing transfer taxes
      • Avoiding the time and expense of probate
      • Providing for continuity in trust asset management in the event of the grantor’s incapacity
  • How do I know what type of trust is right for me?
    • There are many types of trusts. Trusts can be created to suit you and your family’s needs. Your attorney, estate planner, or advisor can help you determine which trust is best for you and your family.
  • What are examples of eligible trust types?
    • Personal trust types accepted include revocable, irrevocable, and future/successor trusteeships and irrevocable life insurance trusts.

You have worked hard to build a solid financial foundation, and you want to be sure that your family will benefit from your legacy, now and in the future. If you have thought about creating a trust for yourself or your family, or if you are currently managing a trust, you may want to consider the advantages of working with an independent investment advisor and Charles Schwab Trust Company of Delaware.

This article covers the highlights of this subject and should not be construed as estate planning advice. For more information, contact our office (610-651-2777). We would be happy to help.