TD Ameritrade Institutional has formed a strategic partnership with National Advisors Trust Company to offer corporate trustee services to registered investment advisors that custody on the TD platform. The services were made available to the firm’s advisors Wednesday, under the newly created Advisors Private Wealth Trust. The announcement kicks off the custodian’s national LINC 2015 conference in San Diego, Calif.
“Advisors who offer trust services can better position themselves to attract clients who are looking to preserve their family’s wealth for future generations,” the firm said, in a statement.
Having a corporate trustee will also help advisors retain assets that could leave due to “successor trustee risk.” This occurs when the primary trustee dies, and a new trustee takes over. The new trustee may move the assets away from the advisor to a local or national bank.
“Independent advisors can improve their chances of retaining assets they manage by offering clients a trustee choice that also supports the independent investment management model of RIAs,” TD says.
Advisors Private Wealth Trust will serve as the corporate trustee, and the service will be integrated with TDAI’s advisor technology.
“As the baby boomers age, demand for trust services will only increase, particularly among high net worth investors,” said Jim Dario, managing director of product management and services at TD Ameritrade Institutional. “This new offering can help advisors build stronger relationships with the next generation and it puts them in a better position to keep the assets they already manage.”
