What is a Directed Trustee?
A Directed Trustee is an independent, third-party professional organization, typically a bank, which specializes in providing fiduciary services to individuals and institutions. Directed Trustees devote their complete attention to the business of providing value-added trust services. Directed Trustees take direction from the plan administrative committee, which has discretion over the plan investments.
Why Hire a Directed Trustee?
Hiring a Directed Trustee distributes fiduciary responsibility more broadly, reducing the possibility of conflicts of interest. An independent professional trustee impartially operates the plan in the best interests of the participants and adds confidence that assets are used for the sole benefit of participants, since trust investments are titled in the name of the Directed Trustee.
Benefits to Client
- Reduce personal liability
- Avoid conflicts of interest
- Independent & objective plan advice
- Compliance guidance
- Agency monitored & audited
- Ease of overall administration
- Providing consolidated asset & income statements
- Processing receipts & disbursements
- Preparing required tax forms
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