Independent Trust Company

WHO WE ARE

OUR SOLUTION

Independent Trust Company (“ITC”) strives to be the best independent provider of trust services working with individuals and their trusted advisors. Trust services, when proactively positioned, can serve to strengthen your relationships with clients and organically grow your business. 

ITC was established to help eliminate many of the conflicts that exist between serving as Trustee and directly managing assets. We focus on providing solid trust administration services, allowing investment professionals to focus on what they do best: prudently invest trust held assets. 

This alignment of interests allows everyone to operate within their scope of expertise and work seamlessly to provide holistic solutions.

THE ROLE OF A TRUSTEE

ACCOUNTING & TAX MATTERS


ESTATE SETTLEMENT

INVESTMENTS & CUSTODY


REAL ESTATE

BENEFICIARY RELATIONSHIP


LEGAL

ADVANTAGES OF SOUTH DAKOTA TRUST SITUS

Does not impose state income taxes on trusts

Permits perpetual trusts, and was one of the first states to do 

Known for its creditor protection laws, and authorizes the use of Domestic Asset Protection Trusts (DAPT)

Permits use of “directed trusts,” which allow a person/entity other than the trustee to be responsible for trust-related decisions

Laws emphasize privacy and provide flexibility for trust modifications

For trusts that own/may own insurance, South Dakota is among the best jurisdictions in the U.S.

OUR DYNAMIC PRICING MODEL

At Independent Trust Company, we understand that your financial needs are as unique as you are. That's why we've embraced a personalized approach to our fee structure, departing from the conventional one-size-fits-all models used by many trust companies.*


Advantages of our tailored fee structure:

PRECISION IN PRICING

RISK-MEASURED APPROACH

FLEXIBILITY IN SERVICES

TRANSPARENT & FAIR

PROACTIVE RISK MANAGEMENT

UNIQUE ASSETS & SPECIAL NEEDS EXPERTISE

WORKFLOW AND TIMELINE

Independent Trust Company

*upon receival of Trust Document and Asset Statement

Advisor

Client

  1. Review asset statement and governing documents for situs transferability, distribution provisions, appointment and removal powers, exculpatory language, etc. to determine scope of responsibility.
  2. Provide written Proposal to advisor and individual(s) with power to appoint with a client contact sheet and template resignation/removal and appointment documents (24-48 hours).
  3. Sign the Acceptance letter, triggering the start of our duties as Trustee.
  4. Execute Trust Service Agreement(s) with necessary parties to the Trust and an Agency Agreement with the Advisor to formally delegate investment management (24-48 hours).
  5. .Submit custodial paperwork and initial cash request.
  6. Assigned administration team performs opening call with Advisor and clients
  1. Provide governing documents and asset statement(s) to ITC for review.
  2. Review and sign proposal.
  3. Facilitate communication with ITC and clients.
  4. Sign Agency Agreement with ITC to formally accept delegation of investment management duties for the trust. The Agency Agreement includes a written Investment Policy Statement as an exhibit to establish the investment objective for the trust.
  5. Submit custodial paperwork completed by ITC to custodian of choice and process the initial cash request.
  6. Participate in opening call with client and assigned administration team.
  1. The client may be a Grantor, Co-Trustee, Trust Protector, or Beneficiary depending on the language of the documents. Generally, ITC considers the primary client to be whomever holds the power to remove and appoint a Successor Trustee. The family dynamics play an additional role. As a result, ITC customizes their approach to each trust.
  2. Review and sign the Proposal provided by ITC in addition to providing contact information for parties related to the trust.
  3. Sign Resignation/Removal and Appointment documents as necessary.
  4. Sign the Trust Service Agreement (TSA) with ITC. The TSA is a formal agreement between ITC and the Client that covers fees, delegation of investment management, and required disclosures.
  5. Participate in opening call with Advisor and assigned administration team.

APPOINTING ITC IS EASY

APPOINTING ITC AS TRUSTEE

This Trust Agreement dated the ___________ day of ___________ 20____, by and between (GRANTOR’S NAME) and
(SECOND GRANTOR’S NAME IF APPLICABLE), residing at (GRANTOR’S ADDRESS) (hereinafter, the “Grantor(s)”), and Independent Trust Company of America, a trust company chartered under the laws of the State of South Dakota
(hereinafter, the “Trustee”), P.O. Box 3270 Rapid City, South Dakota 57709.

AS SUCCESSOR TRUSTEE

If, while serving as Trustee, the Grantor dies, becomes incapacitated, or is otherwise unwilling or unable to act as Trustee, Independent Trust Company of America, a trust company chartered under the laws of the State of South Dakota, P.O. Box 3270 Rapid City, South Dakota 57709, or any corporation that is a successor thereto by merger, consolidation, transfer of assets, or any other manner provided by law, thereafter shall be sole Trustee, with full power to continue the trust administration.

For clients who have reached a level of success requiring a higher standard of attention and guidance.


Specialized offerings for Premier Services clients:

  • Led by our Chief Experience Officer
  • Clients assigned a dedicated, High Net Worth team, with fewer accounts.
  • Exclusive access to high priority phone number and concierge service levels.
  • Enhanced service commitment with first in-line access to resources and decisions

CASE STUDY

EMPOWERING ADVISORS:
A Conflict Free Solution to Trust

INSIDE

As of 2024:

33% of Americans do not currently have an estate plan

Preparation:

90% of estate plans will fail when they are needed.

Trust is a Tool

Using trusts to protect the business you worked hard for.

Starting the Conversation

Independent Trust Company (ITC) is founded on the principle that a trustee who does not also manage funds in-house is best suited to provide exemplary fiduciary services while honoring grantor wishes and respecting long standing professional relationships with financial and other professional advisors. ITC choses alignment with the families we serve ahead of extra profits a trust company may generate by managing or packaging investment products in-house. 


In September 2023 ITC was approached by a large broker dealer to discuss bringing a large team of advisors and their client trust accounts to the platform. The firm is comprised of 90+ advisors and staff and approximately $2.4 billion in wealth management assets. The firm needed to find a home for $75 million of assets being held in trust with a Fortune 500 trust company who also managed investments in-house, creating a conflict with the broker dealer. 


Because ITC can leverage expertise from the wealth management firm and utilizes streamlined internal processes, ITC has begun successful facilitation of the transfer of assets from the previous trustee, to the new broker dealer and custodian, with ITC as trustee. With approximately $5 million invested in proprietary software ITC is able to easily execute such transitions resulting in minimal disruption to client services. 

Protecting your Client

You put in countless hours prospecting, reviewing, and onboarding every client. Why leave the door open for them to walk out if a Trustee becomes involved? 

John, a seasoned financial advisor with a longstanding presence in his hometown of 35 years, had amassed a robust clientele base primarily comprised of local residents. However, with the passage of time, his clientele was gradually aging. When one of his clients passed away, John reached out to ITC seeking assistance. The local bank, designated as the successor trustee, requested the transfer of assets exceeding $7 million from John's management to theirs. 

Upon examining the trust document, ITC discovered that the client's son possessed the authority to appoint a new trustee. This presented an opportunity for John to maintain his role as the family's financial advisor, while ITC could assume trustee duties for the trust beneficiaries. 

Questions to Ask

Q. What are your estate planning goals?

A. After major life events such as (death, divorce, clients are likely to review and          make changes.

Q. Who do you want to inherit your assets?

A. Deciding who will benefit from their estate is something most clients have
     not talked with anyone about.

Q. What are your healthcare wishes? 

A. Addressing what the client’s healthcare wishes are for is important as they             make their transition into elderhood. 

Q. Have you considered tax implications for your estate?

A. Some estates may face significant taxes during wealth transfer, skillful                   planning is frequently essential to mitigate these tax burdens. 

Q. Do you have assets you wish to protect? 

A. South Dakota offers some of the best asset protection laws in the U.S. to               protect clients from creditors, nursing homes, divorces, lawsuits, etc. 

South Dakota

In a move to optimize their substantial wealth of roughly $10 million, a client residing in California sought help. Using a corporate trustee in South Dakota to serve and consult with appropriate professionals in the crafting of a tailored plan for their wealth, would enable them to leverage the favorable tax environment and robust legal framework offered by South Dakota. Potentially saving upwards of $300,000 annually in income taxes and likely shielding their assets from California's high tax rates. Through meticulous guidance and implementation, they were empowered to navigate the complexities of interstate trust landscape ultimately securing a brighter financial future, creating a legacy with the potential to last generations. 

CONTACT US

855-75TRUST

605-877-6060

kaleb.coleman@itcoa.com

The information provided in this article is for informational purposes only and should not be construed as legal, financial, tax or professional advice. Independent Trust Company (ITC) does not guarantee the accuracy, completeness, or reliability of any information presented herein. Any decisions or actions taken based on the content of this article are at the sole discretion and responsibility of the reader. ITC is not liable for any losses, damages, or liabilities arising from the use or reliance on the information provided in this article. Readers are encouraged to seek professional advice from qualified legal, financial, tax or estate planning professionals regarding their specific circumstances and needs. ITC is not a financial planner, broker, or tax advisor. Additionally, laws and regulations may vary by jurisdiction, and readers should consult with local experts to ensure compliance with applicable laws and regulations. ITC is not endorsing or recommending any specific course of action, product, service, or provider mentioned in this article. Any references to third-party entities, products, or services are for informational purposes only and do not constitute an endorsement or recommendation by ITC. Past performance is not indicative of future results, outcomes vary depending on many circumstances, and investments involve risks, including the potential loss of principal. Investors should carefully consider their investment objectives.

 

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