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What Financial Advisors Really Need to Know About Trusts

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Written by: Premier Trust

One: Seventy-two percent of people with one million or more in investable assets utilize trusts. If you aren’t talking to your clients about trusts someone else is. Talking with your clients about their estate plan will avoid poaching by other advisors, insurance agents, banks, and trust companies that offer investment services.

Two: Thirty-eight trillion dollars is expected to be disbursed from estates over the next twenty years. We are about to witness a massive generational shift of wealth. Someone is going to have to invest those assets. Work with an advisor friendly trust company, so that someone is you.

Three: Eighty to ninety-five percent of financial advisors’ accounts will die with the client. Trusts can help ensure multigenerational client retention. When a client dies their account is generally moved within six months (if there isn’t an advisor-friendly trustee on the team before death). Why? The next generation has no connection with their parents’ advisors. They have their own trusted relationships and they choose to take their money elsewhere. Unless you really enjoy prospecting this is a scary realization. You have already prospected them once, now let’s maintain that relationship through the next generation. Utilizing an advisor-friendly trust company as trustee on your clients’ trust ensures you manage the assets for more than one generation.

Four: A book of business with trust accounts and an advisor friendly trustee creates a stronger long term revenue stream, and can make your business worth up to 40 percent more when you plan on selling it. Inevitably you will perpetuate your business, whether you sell it or transition it to another advisor. You can’t expect top dollar if you don’t plan. Work with an advisor friendly trust company to make sure your practice is worth all the hard work you put into it.

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