Understand What A Delegated Trust Is – Financial Magazine
Investment obligations of the trust are assigned to trustees. Giving these duties over to trustees carries the same burden as financial advisors for the risks associated with investing. In the event that something goes wrong in the investment, the trustees are as liable to be accountable as financial advisors. Because of this level of responsibility, the fees paid by trustees can be quite high.
There are benefits of having the delegated trust through an advisor-friendly trust company. The trust’s clients have the choice to select their financial adviser. The financial advisor will decide on which custodian to choose. In addition, the consumer gets the chance to select the trust position that is best for them. This can be an extremely complicated concept however, interested parties must be aware that they’re advantageous. A delegated trust has another benefit: it’s easy to establish.
Delegated trusts have one drawback: the trustee’s fee may be a bit more expensive than other types of accounts. The fee is typically 10 to 15 percent more than other types of accounts. iva4sazuc8.