Banks, insurance companies, brokerage firms, and financial planning firms are all contending to gain loyal and valuable consumers. Consequently, consumers frequently find their assets divided among these institutions. One solution to this concern is a trust company, which can offer a variety of investment, tax, and estate planning services for clients.

This article will give a high-level summary of the nature and function of trust organisations, and the services they provide.

What Is a Trust Company?

A trust company is a separate corporate entity owned by a bank or other financial institution, law firm, or independent partnership. Its function is to handle trusts, trust funds, and estates for individuals, businesses, and other entities. A trust is an arrangement which enables a third party or trustee to hold assets or property for a stakeholder.

Trust companies get their title from the fact that they perform in a fiduciary capacity for their clients as trustees. A fiduciary is an organisation or an individual with the responsibility to act on behalf of others to manage their assets.

The maximum of a trust company’s assets is held in actual trusts, with the Trust Company named as the trustee. Trust companies generally employ several types of financial professionals, including financial planners, wealth advisors, attorneys, portfolio managers, CPAs, and other tax professionals, trust officers, real estate experts, and administrative personnel.

Important Factors

A trust company is a separate corporate entity owned by a bank or other financial institution, law firm, or independent partnership.

A trust is an arrangement which lets a third party or trustee hold assets or property for a stakeholder.

A trust company handles trusts, trust funds, and estates for individuals, businesses, and other entities.

Trust companies function on a broad spectrum of services related to investment and asset management and safekeeping services.

Benefits of a Trust Company

One of the main operations of majority of the trust companies is handling the investment portfolios within the trusts of their clients. The investment management is conducted either in-house or by an affiliated third-party manager opted by or advised to the client.

A vast range of investments, spanning from individual securities and mutual funds to derivatives and real estate, can be utilised to accomplish several investment targets, like growth or income. Special services are also accessible for high-net-worth clients, comprising of alternative investments, like limited partnerships, natural resources, private equity, and hedge funds. Irrespective of the kind of management employed, investment management is always personalised for each client’s risk tolerance and time horizon.

Financial and Trust Services

Trust companies also can offer safekeeping services within secure vaults for other kinds of tangible investments or valuables, like jewellery and collectibles. Frequently financial planners are employed to devise comprehensive financial plans for clients, enveloping all factors of a client’s financial life, as well as investments, insurance, and retirement planning. A planner might also emphasise on a particular segment of a client’s finances, like investment or a Private Foundation. Extensive income, gift, trust, and estate tax return preparation and planning are also standard fare for many trust companies.

Why Employ a Trust Company?

Trust companies can offer a wealth of services to clients from one convenient, centralised location. They save their clients time and effort by removing the requirement to coordinate financial assets and information between brokers, financial planners, tax advisors, tax preparers, and attorneys. Trust companies also take full fiduciary responsibility for their clients’ financial well-being, thus ensuring that the clients’ best interests are always deemed in each service and transaction functions.

Consumers who want to engage the services of a trust company will have many local entities from which to choose. Virtually all major banks and savings institutions offer trust services through a separate department. Still, most clients who wish to employ a trust company must generally meet certain financial requirements; for instance, a trust may require the client to have a net worth of at least MYR 500,000.

Labuan Trust Company

Labuan “mid-shore” jurisdiction offers a wide range of products and services which is required to go through a Labuan Trust Company for incorporation or registration. QX Trust Co. Ltd is governed and regulated under the Labuan Financial Services Authority (LFSA) and is authorised to provide full-fledged fiduciary and trust services to clients who are interested in setting up a company, registration of private foundation, financial business license application including custodian and legal services.

QX Trust holds experience required to assist the HNWIs and affluent to set-up their business and private wealth needs swiftly and efficiently with worthy, accurate information to make sure the streamlining of the process is as smooth and seamless as possible. To book a free complimentary session with us, connect at +60 3 9212 6940 or consultant@qx-trust.com.