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Bank trust departments offer conservative management of trust funds, estate planning support, and administration of trusts. They also provide agency services for businesses and can help manage assets during critical illness.
Among the financial services offered with many banking institutions is the bank trust department. Essentially, the department’s role is to handle the administration of trust funds, provide estate planning support and, in some cases, see to the disposition of a deceased client’s estate.
One of the factors that makes using bank trust departments so attractive is that they tend to be somewhat conservative with their management approach. This means that the department is likely to take time to evaluate all options when involved in the liquidation of estates, the establishment of guardianships, or the administration of trusts established for the survivors of a major depositor. This methodical approach is often in line with the motivation for establishing the asset in the first place, which was to provide a source of financial support for loved ones, even after the death of a parent or partner.
Along with liquidation of the estate, the department may also provide a number of other agency services, such as functioning as the trustee for corporate bonds or administering a pension or profit-sharing plan. These types of services are usually associated with businesses, although a wealthy private depositor would certainly qualify for this type of support as well. As a means of ensuring that the resources of the bank or banks safely protect the investments involved, the service makes it relatively easy for the client to deal with other matters. As a result, the investor can focus more on family matters or other business matters, and be less involved in the task of protecting assets that are already established and set on a path of steady growth.
The bank trust department can also be a viable option for someone who does not have family members who can manage assets in the event of critical illness. Giving the department authority to make decisions any time the client is incapacitated helps take the worry out of dealing with finances while dealing with some type of personal emergency or recovering from surgery. From this perspective, it helps to safeguard the financial well-being of the client, ensuring that there will be assets to meet financial obligations during the recovery period.
Smart Asset.
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