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The subject is “What’s a delegated Trust?” The speaker clarifies the fact that all trusts are delegated. It is always someone else who manages the trust’s investment obligations. The trustees who delegate obligations to investors share the same level of responsibility for fiduciary risks of investment that the financial advisors. The trustees could be held responsible for any issues with investments and financial advisors even if not. Because of that high level of accountability, fees of trustees tend to be a little bit higher.

There are advantages to having the delegated trust through an advisor-friendly trust business. The main benefit is that the trustee can choose who the financial advisor will be. Financial advisors have the option to choose the custodian. Clients can choose the trust type that works ideal for them. This can be an extremely complicated concept but interested parties should know they’re advantageous. A trust delegated to another person has an additional benefit: it’s very simple to create.

The delegated trust comes with one drawback: the trustee fee can be slightly more costly than other types of accounts. It’s usually between 10 and 15% over other accounts. xsomkgakon.

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