Trust Services and Administration

Trusts are established for various reasons. Some of the most common include; the consolidation, control, management and supervision of assets; mitigating the time constraints associated with probate; minimizing certain inherent costs relative to estate administration; and facilitating possible desired tax planning strategies.

Implementing strategic goals whereby the principles of trust administration are utilized may be significantly advantageous, serving as a key component that ultimately can be integrated with the process of wealth management.

The formation and oversight of a trust arrangement, is a process that requires proper advisory guidance and expertise, so that the trust is administered in accordance with the terms of the trust, which include provisions for acting on behalf of all beneficiaries, applicable to the trust arrangement. Special consideration must be given as to whom the donor, also know as the grantor trustor and in some cases the settlor, would like to elect as a trustee.

Decisions in choosing an individual or entity to perform the duties and responsibilities of trustee are usually contingent upon any number of factors, that may include, but are not limited to; the type of trust; assets that are held; and specific arrangements that may have provisions for perpetuity.

Common scenarios include having the grantor donate property that he or she owns placed into trust for the owner's benefit or beneficiaries who may be designated at the grantor's discretion. Under this scenario, the grantor may also be considered as trustee, and settlor for his or her own property held in trust. Grantors may also transfer trust property to a third party Institutional or Corporate trustee. In this instance, the grantor makes a legal declaration to transfer property to a successor trustee.

Regardless of the circumstances, selecting a trustee is a decision which should be given serious consideration. Acting in the capacity of a trustee, provides an entity or individual with the ability to hold and dispose of a legal or beneficial interest in property.

A trustee is considered to have a fiduciary responsibility as such, in addition to the responsibilities of administration, other duties assumed include loyalty and prudence, acting solely and completely in good faith and in the best interest of the trust and the beneficiaries of the trust. Violations of this duty could result in fiduciary liability exposure, as well as the removal of the trustee. Pursuant to the Uniform Trust Code Sec. 105(b) (2), the duty of the trustee to act in good faith and honesty with respect to the trust and its beneficiaries may not be waived by the grantor.

Holland Financial Services LLC recognizes the importance of ensuring that accumulated wealth is properly managed and distributed in accordance with client objectives.

In addition to providing unbiased investment management, our firm offers a variety of professional trust services including:

• Charitable Remainder Trusts
• Irrevocable Trusts
• Life Insurance Trusts
• Living Trusts
• Minor's and Educational Trusts
• Special Needs Trusts

Holland Financial Services LLC acts as an independent adviser with respect to the management of trust assets. The firm will work with the client's other advisers, such as legal and tax counsel and recommends that such advisers be proactive in the trust administration process. While the firm will ensure that each appropriate trust account is in good order, providing the necessary and appropriate account forms and related documents required for a particular type of trust, it is recommended that each client consult with their own counsel regarding specific legal and tax considerations.

In order to provide complete objectivity with respect to the management of financial assets held in trust, Holland Financial Services LLC offers all trust clients professional trustee services through a professional Corporate Trustee. The primary function of the Corporate Trustee is to adhere to instructions written in the trust document and to supervise trust property and distribute income and principal to the trust beneficiaries in accordance with the terms of the trust. The benefits of utilizing a Corporate Trustee include:

• Enhanced accounting and statement reporting
• Administration of the Trust document
• Collecting and distributing interest and principal
• Holding trust assets in secure custody
• Tax return filing for the trust
• Tax information provided to beneficiaries
• Assumes fiduciary responsibility
• Fiduciary errors and omissions protection

The goal of our firm with respect to trust services is to provide complete advisory guidance with respect to an appropriate trust arrangement, including the supervision of investment assets held in trust. The role of an investment manager and trustee are two distinct separate functions. In some instances, these roles may be dual, contingent upon the services offered. A properly drafted trust document should explain the role of the investment manager and trustee so that each of their responsibilities coincides with the drafting language contained within the trust document. Please feel free to contact us for additional information.