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Frequently Asked QuestionsHow is AST Capital Trust different from other trust companies?
Where are you chartered?
As an advisor, can I manage the assets in my client's trust?
Does AST Capital Trust compete with advisors for retail business?
Will AST Capital Trust employees speak personally with my clients?
How do you charge for your services?
How do advisors get compensated for their work on trusts?
Can I transfer an existing trust to AST Capital Trust?
Do I have a choice where my client’s trust assets are held?
Will your trust company serve as administrator of a trust without being trustee?
What criteria are used to determine a client's investment policy?
How much cash should be held in a trust account?
How often are accounts reviewed?
Does Delaware offer potential tax advantages for existing trusts?
Does AST Capital Trust act as trustee for charitable trusts?
Does AST Capital Trust serve as trustee for irrevocable life insurance trusts (ILITs)?
How is AST Capital Trust different from other trust companies? AST Capital Trust provides personal trust, retirement plan, and institutional account services for brokers, registered investment advisors, investment managers, financial planners, third-party administrators, and financial management firms. We are a full-service trust company, providing all of the services available from typical bank or trust company with one notable exception: AST Capital Trust does not offer investment management services. Our advisor partners manage the investment of trust assets. This is very different from traditional bank and trust companies that require trust assets to be held and managed by the bank and trust companies.
Where are you chartered? AST Capital Trust Company operates under a Delaware banking charter. Delaware law is considered the most favorable law for both trust companies and those seeking to create trusts. Advisors nationwide work with AST Capital Trust in order to take advantage of Delaware's trust-friendly statutes.
[Top] As an advisor, can I manage the assets in my client’s trust? Yes. We routinely work with advisors who have discretionary authority over their client’s assets, as well as with advisors who do not have the ability to take discretionary accounts. In both scenarios, the advisor is able to manage the assets in the client’s trust.
[Top] Does AST Capital Trust compete with advisors for retail business? No. Our business model is unique in that we do not compete with our advisor partners. We provide trust administration services, while the advisor acts as investment manager. We do not accept trust accounts directly from clients.
[Top] Will AST Capital Trust employees speak personally with my clients? We may, although the extent of our communication with your clients depends on your wishes. In most cases, advisors are comfortable with our trust administrators speaking directly with their clients concerning trust account matters. Certainly, though, when it is necessary under our duties as trustee, we will speak directly with your clients concerning their trust account. We encourage advisors to participate in any communications with their clients.[Top] How do you charge for your services? Our fees are based on the value of the trust and are highly competitive. We charge additional fees for tax preparation and other items, such as management of real estate, business and partnership assets.
[Top] How do advisors get compensated for their work on trusts? Advisors are compensated through asset management fees or commissions, much the same way advisors are paid for managing non-trust assets.
[Top] Can I transfer an existing trust to AST Capital Trust?Yes. AST Capital Trust can assist advisors and their clients in weighing the benefits of moving an existing trust, and, where appropriate, in completing the transfer.
[Top] Do I have a choice in where trust assets are held? Yes. AST Capital Trust can work with almost any custodian. We require electronic connectivity with the custodian, but with data conduits already in place to scores of broker dealers and custodians, it is likely you can use your custodian to hold trust assets. When discussing a new trust with AST Capital Trust, be sure to advise us which custodian your firm uses.
[Top] Will your trust company serve as administrator of a trust without being trustee? Yes. We can do this by acting as agent for the trustee. In some trust transfer situations this is the only way we can provide service.
[Top] What criteria are used to determine a client’s investment policy? The trust document is the main source of information regarding the appropriate investment mix for the trust. Whether the trust has present and/or future beneficiaries has great bearing on the way the trust must be managed. If the grantor is still living, the grantor's input also is important. Additionally, as trustee, AST Capital Trust will have recommendations, based on our experience as a corporate trustee and our understanding of the trust document. Relevant factors include the trust’s time horizon, liquidity concerns, tax considerations and legal constraints. The investment policy statement is a collective statement, agreed on by all parties, as to how the investment manager will select investments.[Top] How much cash should be held in a trust account? A trust should hold enough cash to meet short-term liquidity needs, such as regular distributions, possible discretionary distributions, and fees and taxes that may be paid during the next four to six months. We maintain a separate cash account for each trust to meet these needs and minimize disruptions to the investment portfolio.[Top] How often are accounts reviewed? All accounts are reviewed within 90 days of acceptance and at least annually thereafter. The review is conducted by the administrator assigned to the trust, in conjunction with our portfolio manager and you as the advisor. Information about the beneficiaries’ circumstances is reviewed and updated, and the investment policy is reviewed for compliance and appropriateness.[Top] Does Delaware offer potential tax advantages for existing trusts? Yes. Delaware has no state income tax or capital gains tax on assets held in irrevocable trusts for out-of-state beneficiaries. It also boasts strong asset-protection laws and trust-friendly courts. To learn more about the many benefits of creating a trust in Delaware, click here.[Top] Does AST Capital Trust act as trustee for charitable trusts? AST Capital Trust can serve as trustee for virtually any personal trust, including the various kinds of charitable trusts. Our trust professionals have a high degree of administrative expertise in all aspects of charitable trusts and private foundations.
[Top] Does AST Capital Trust serve as trustee for irrevocable life insurance trusts (ILITs)? Yes. We coordinate premium notices, send Crummey letters and statements, and perform whatever tax services the trust requires.[Top]
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