Datalynx and
Santa Fe Trust are now offering personal trust services to Datalynx's investment advisors, as a result of a recent agreement between the two companies. Datalynx, a subsidiary of First Trust Corp., will continue to provide the back office and custodial services, while Santa Fe Trust will provide trust administration and record keeping services.
Historically, investment advisors have expressed reluctance about taking on personal trust business, said
Skip Schweiss, vice president of Datalynx, because most corporate trustees, such as banks, take over asset management as well as trust administration and record keeping. If an advisor's client designates a full-service corporate trustee as successor trustee in a personal trust the advisor will typically be removed as investment manager of the trust when the client becomes incapacitated or dies.
Unlike most corporate trustees, Santa Fe Trust does not provide money management services, nor does it draft trust documents, invest client portfolios, prepare trust tax returns, or sell insurance products. The firm works with the client's legal, investment, tax, and insurance professionals to handle these services. Advisors, therefore, can continue to manage a trust's assets, while Santa Fe Trust provides only day-to-day trust administration services.
Both Datalynx and Santa Fe Trust are independent organizations and neither solicits the business of advisors' clients, so advisors can retain relationships with clients.
"An advisor feels more comfortable recommending that a client have a personal trust knowing that s/he can continue to provide asset management," said Schweiss.
Datalynx also will provide downloads of information about client trust accounts directly to Santa Fe Trust for trust administration purposes at no charge.
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