Trust Company Specialists

Revzon's Institutional Services is America's trust company specialist serving wealth managers, broker/dealers, law firms, mutual fund companies and pooled fund firms.

As trust company specialists, Revzon will help your firm charter its own trust institution -- and thus attract high net worth clients, and serve as trustee in nearly all 50 states. In the process you are able to attain and project financial institution stature which inspires greater client confidence.

By owning your own trust company you gain: firmer control of your accounts, new opportunity to attract bigger accounts, greater wealth protection under powerful asset protection laws, and with no corporate or state income taxes.

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Why should a wealth manager set up a trust company?

You have worked hard developing relationships with your clients and helping them create their wealth. But now as your clients enter their retirement years and beyond, you risk being left out of the equation. Estate planning lawyers often influence their clients to place their assets at trust companies they have comfortable relationships with. If you're a wealth manager without an option to offer the estate planning attorney, chances are sooner or later your assets will wind up at a competitive firm.

Here are some of the benefits for wealth managers:

  • Maintain control of the accounts you have developed relationships with. Don't lose them to competitive firms who find they can get a better return or enjoy a better relationship with other trust companies.
  • Create a new profit center and charge trustee fees and other fees to your clients rather than having these paid out to a third-party trust company.
  • Increase the size of your business and capture new assets from wealthy investors who are looking to place their assets with a firm that has full state-of-the-art services in-house.

Why should a broker/dealer set up a trust company?

For the broker dealer it is advisable that you offer your brokers and your wealth managers alike the ability to keep their business in-house and on the same team. Thus owning your own trust company can be an essential part of your total financial strategy. Here are some of the benefits:

  • Greater control. Keep control of accounts in the same firm. Don't risk losing them to a third party trust company.
  • Profit center. Earn substantial profits through charging trustee fees and other fees from providing your clients important and timely trust services.
  • Attract new accounts. With the addition of your own in-house trust company you will attract new wealthy clients whom you can now help to lower taxes on securities transactions, preserve assets from lawsuits and other threats, and maintain control of their assets so an orderly transfer can be made to the next generation.

What some broker / dealers say about owning their own trust companies:

"When we established Raymond James' Trust Company 15 years ago it was the smartest single investment and strategy our firm had ever made."
- Raymond James Company, Member NYSE

"For any brokerage firm that doesn't have its own trust company it's going to be increasingly more difficult to meet the needs of investors in the next 15 years. It is for this reason that we set up a private trust company in 2003."
- LPL Financial, Independent Broker Dealer

"It would be foolish to think that we could compete with our peers such as American Express, CitiBank and Wachovia for affluent clients without owning and operating our own trust company."
- Merrill Lynch and Co., New York

Why should a pension service provider or TPA set up its own trust company?

The answer is service. As a third-party administrator or pension service company administrator, it is important to be able to provide your clients a one-stop solution for account handling. Third-party administrators now own their own trust companies as a way of assuring that the accounts will remain in-house.

Here are the important benefits to consider for TPAs and pension service company providers:

  • Maintain control of accounts. Don't risk loss of your firm's accounts by having them placed with outside third-party trust companies.
  • Increase your business. More and more clients will come to your firm because you now have your own in-house trust company providing a one-stop solution. Brokers and other referring companies that seek a total solution package can now come to your firm and benefit from one solution.
  • Increase profits. By owning your own trust company you can increase income from charging trustee fees and other fees that are not available to you if you replace the business in the hands of third-party trust companies.

Why should a law firm set up a trust company?

In the U.S. today there are several hundred law firms that own their own trust companies. As a will and estate planning specialist, it makes perfect sense to create a perfect synergy between you and your client by assuring that the trust that you set up for your client will be executed with perfect precision through your own trust company.

For the law firm here are the important benefits to consider for setting up your own trust company:

  • Maintain control of accounts. As a law firm it's important to know that when preparing a will or trust for a client, you may be called upon to ensure that your will or trust will work. In many cases involving a trust, the trustee will not interpret or understand how the trust is supposed to operate. Heirs could be left out, or even worse, lawsuits may follow to ensure the trust is executed properly. When a law firm owns its own trust company, it will ensure that the process of transferring wealth to the heirs will flow without problems.
  • Ensure proper planning. There's an important synergy between a trust company and a wills and estate attorney that ensures the process operates smoothly and seamlessly. For example, if an instruction isn't understood properly by a trust officer it can result in devastating consequences to an heir or beneficiary. Having your own trust company assures that clients' estates are being planned properly.
  • Capture new business. More and more wealthy families prefer following the advice of their attorneys. If your firm offers advice it also makes sense to coordinate an estate plan by implementing it through you law firms own trust company.
  • Profit. Earn substantial income through charging trustee fees and other fees from performing trust service intermediation on behalf of your clients.

Why should a mutual fund / pooled asset firms set up a trust company?

The reason that Eaton Vance, Fidelity, and Franklin Templeton own their own trust companies is to ensure that the assets do not leave the firm. As an umbrella mutual fund provider it is important to provide all the solutions needed in order to maintain ERISA accounts and other forms of accounts that will require trust company intermediation. This requirement extends to pooled investments such as GIC funds, collective investment funds, etc.

Therefore, for the mutual fund / pooled asset firms here are the important benefits to consider for owning a trust company:

  • Provide full services to your mutual fund clients to forestall their investing directly or through a broker dealer. There's no need to outsource the finding of a custodian or trustee someplace else. Simply provide it in house.
  • Keep control of your captured assets. As a mutual fund company it makes better economic sense to keep all your assets under one roof. To refer your business to an outside trust company for the accounts that require this form of intermediation poses risk of loss of accounts.
  • New profit centers. By owning your own trust company you can gain profits from charging trustee fees and other fees to your clients, thus creating a new profit center for your mutual fund.

More Information

Seven Key Reasons Why a Trust is Best

  • Maintain control while alive so that assets are preserved and protected.
  • In the event of sickness or disability make certain that important decisions are left to the right people. A trust ensures that in the event your client is disabled or unable to make good decisions, the right person is appointed to the job.
  • Control from the grave. After your client dies it is important that the assets which have been left to the beneficiaries and heirs are administered properly. The use of a trust ensures that the investments are made prudently and wisely.
  • Asset protection. In today's litigious society more and more lawsuits are filed every day. An asset protection trust helps ensure that clients' assets are protected from unwarranted and unfair lawsuits.
  • Tax minimization. With your client's trust, taxes can be avoided legally by placing the assets in a state which imposes no tax on trust income.
  • Avoidance of probate. With the use of a trust your clients will avoid probate taxes in most states.
  • The wealthy require the use of trusts. Trusts are the only legal vehicle available to pass wealth to future generations.

As an additional aid, we can also support you with an on-demand, web accessible trust accounting system.

Key Benefits of a Trust Company

  • Control of Accounts - Retaining accounts in-house, in your own trust company, assures your clients will not be influenced to move assets to other firms.
  • Opportunity to Gain New Accounts - As a trust company, you can serve private retirement plans, charitable foundations, and endowments, and other accounts that can only be hosted by a trust company.
  • Reduce Trustee Fees to Your Clients - Corporate trustees now charge heavy fees. With your own trust company you can control costs and save clients' money.
  • Provide Pooled or Omnibus Accounts - You can create mini-funds in-house to purchase large positions in mutual funds or other securities with buying discounts and reduced transaction costs. You can save clients huge fees.
  • Enhance Credibility - A trust company helps you attain financial institution stature, thus generating greater client confidence.
  • Build Equity in Your Own Firm - A trust company helps you retain profits lost to third-party trust companies thus building equity in your own business.
  • The wealthy require the use of trusts. Trusts are the only legal vehicle available to pass wealth to future generations.

Why South Dakota is the best state by far for owning a trust company

  • Quality of Trust Regulation - South Dakota trust statutes and regulations provide for the highest protection and care of client assets.
  • Asset-protection friendly - South Dakota has one of the best asset protection laws now available in the U.S. It carries one of the shortest statutes of limitations and is advisor friendly. It permits financial advisors in other states to act as co-trustees.
  • No state tax - South Dakota imposes no corporate or state income tax. This makes it possible for trusts or other entities managed by your trust company to legally avoid state tax.
  • Low operating costs - Cost of labor, premises, and services are among the lowest in the U.S.
  • Out-of-state ownership permitted - With the proper management and disclosure, South Dakota permits the owner(s) of a licensed South Dakota trust company to reside anywhere.
  • Host for retirement accounts - A South Dakota trust company may serve as custodian trustee for many types of ERISA accounts such as IRAs, SEPs, KEOGHs, 401ks, and other company qualified plans.
  • South Dakota trust law permits holding all types of client assets - Serve as custodian or trustee for stocks, bonds, mutual funds, partnership interests, debt, real estate, title to autos/vessels, plus personal property such as art, fine wine, and more.

While we feel there is a definite advantage to South Dakota we also work with Trust Companies in Nevada, Washington, New Mexico, Minnesota, Mississippi and Delaware. The final choice of which state to obtain a charter from is determined by many factors.

Revzon Consulting offers you total consulting assistance to help you complete the licensing process. Plus, we can provide full middle office and back office support including:

  • Trust administration with accredited trust officers
  • Custodial services
  • Accounting and compliance services
  • On-demand web accessible trust accounting system

What You Can Expect

With the experienced guidance of Revzon professionals, you can generally be up and running with your advisor-owned trust company within six months, depending on your particular circumstances.

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"We have outsourced our internal audit function to Les and his firm by way of another company. His deep, hands-on experience in the trust and investment business provides him with a uniquely clear understanding of our Company and how it should be run consistent with state law and sound fiduciary principals."

Coastline Trust Company

Robert Gaumont / Chief Investment Officer

"Les has proven expertise in the wealth management operations field. His work is accurate and timely. He develops excellent rapport with clients and service delivery is consistent with customer expectations."

SerVus Consulting Group, Inc.

John Kluttz / President

"I have known and worked with Les Revzon for over 30 years and highly recommend Les for any consulting or operational engagement involving wealth management. He is expert in every aspect of the trust and bank compliance markets. Over the past few years, Thomson Reuters has called upon Les' expertise to help us explore new ventures in Employee Benefits as well as preview and advise us on a new Workflow Management offering for wealth management organizations. But Les is not only knowledgeable in his fields of expertise. He has the skills, abilities, charisma and know-how to successfully manage complex consulting and operational engagements."

Thomson Reuters ONESOURCE Trust Tax

Art Ridolfi / Executive Sales Manager

"Les provided us invaluable assistance in our trust system conversion. His trust background and keen eye for numbers were a tremendous asset. I enjoyed working with Les and quickly discovered that his integrity and expertise would allow me to rely on the accuracy of his work and focus on other areas of the conversion."

Choate, Hall & Stewart

Peter Quigley / Trust Operations Manager

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