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Frequently Asked QuestionsHow is AST Capital Trust different from other trust companies?
Where are you chartered?
How does AST Capital Trust work with financial advisors and third-party administrators for business?
How do you charge for your services?
Will there be a single point of contact at AST Capital Trust for questions regarding my client’s retirement plan?
How will AST Capital Trust communicate with the custodian of the plan’s assets?
What information does AST Capital Trust provide to its plan clients?
Will you make an annual certified trust statement available for the plan’s fiscal year?
Does AST Capital Trust undergo an SAS 70 Level II each year?
Who keeps track of the participants who are in payee status in a defined benefit plan?
For defined benefit plans, does AST Capital Trust provide a monthly check log or register of the periodic distributions?
Where are plan contributions sent?
Do you handle federal withholding, remitting and reporting?
Can I transfer the trusteeship of an existing retirement plan to AST Capital Trust?
What documentation is required to transfer assets from the current trustee to AST Capital Trust?
How long will the transfer process take?
When will you be able to issue distribution checks after taking over trust administration for a defined benefit plan?
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 companies with two notable exceptions. First, 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. Second, we generally accommodate any custodian the advisor prefers. In this way, the advisor maintains complete control of the assets.
[Top] Where are you chartered? AST Capital Trust operates under a trust charter issued by the Delaware Office of the State Bank Commissioner.
[Top] How does AST Capital Trust work with financial advisors and third-party administrators for business? We never compete with our partners for their business. Instead, AST Capital Trust partners with financial advisors and TPAs to offer their clients superior trust administration services. We o not offer investment management services nor do we offer plan administration services.
[Top] Will there be a single point of contact at AST Capital Trust for questions regarding my client’s retirement plan? Your plan will be assigned to an experienced relationship manager who will be your primary contact and will oversee all trust functions for the plan. Your relationship manager is part of team of retirement plan professionals who are familiar with your plan and can provide knowledgeable backup in the event your relationship manager is not available.
[Top] How do you charge for your services? Our services are priced under a dual structure that distinguishes between market value activities and transactional activities. We bundle core services that apply to all plans and assess a market value fee for these services. Then, because transactional activity will vary from plan to plan and client to client, we charge separate fees for benefit payments, issuance of participant loans, maintenance of individual directed accounts, unitization services and other transaction-based activities. Please click here to contact a representative for a complete description of our fees.
[Top] How does AST Capital Trust communicate with the custodian of the plan’s assets? We maintain electronic connectivity with multiple sub-custodians to receive daily information on the plan’s investments. Your relationship manager and sub-custodian facilitate information regarding incoming monies and requests for money to satisfy distribution needs.
[Top] What information does AST Capital Trust provide to its plan clients? AST Capital Trust issues comprehensive trust statements on a monthly, quarterly or annual basis, according to the client’s wishes. Along with a traditional asset statement, clients can choose to receive a variety of investment performance and activity-based reports. Additional report options include portfolio appraisals, transaction summaries, deposit and withdrawal histories, outstanding check registers and monthly benefit payments. Advisors can elect to receive hard copy reports or electronic files.
[Top] Will you make an annual certified trust statement available for the plan’s fiscal year? Yes. We provide the certified trust statement based on the plan’s fiscal year. You may request the certified annual report from your relationship manager.
[Top] Does AST Capital Trust undergo an SAS 70 Level II each year? Yes. A copy of the most recent SAS 70 Level II is available upon request.
[Top] Who keeps track of the participants who are in payee status? The plan administrator or plan sponsor keeps track of the plan participants who are in payee status and provides updates to AST Capital Trust as needed. The plan sponsor can update the benefit distribution file directly, online, by accessing the partner Web site.
[Top] For defined benefit plans, does AST Capital Trust provide a monthly check log or register of the periodic distributions? Yes, if you would like one. You can request a monthly check register from your AST relationship manager.
[Top] Where are plan contributions sent? Company contributions are sent to AST Capital Trust.
[Top] Do you handle federal withholding, remitting and reporting? AST Capital Trust is able to withhold taxes for payees based on the information provided by the plan sponsor or plan administrator. We remit and report to the federal government on a daily basis and provide 1099-R reporting at year-end to plan participants and the IRS.
[Top] Can I transfer the trusteeship of an existing retirement plan to AST Capital Trust? Yes. Our team of experienced conversion professionals can walk you through this simple process.
[Top] What documentation is required to transfer assets from the current trustee to AST Capital Trust? Generallly, you will need (1) a copy of the executed plan document, (2) a copy of the plan’s determination letter, (3) a copy of a recent asset statement, (4) the AST Capital Trust account application in electronic format, (5) an original board resolution appointing AST Capital Trust as non-discretionary trustee or custodian of the plan, (6) an original signed AST trust agreement, and (7) a list of authorized signors. Additional information or documentation may be required. Please click here to obtain more information.
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How long will the transfer process take? The transfer and re-registration process generally takes no more than two weeks once all of the paperwork has been completed and AST Capital Trust has accepted the plan. Conversion may take longer, based upon plan requirements
[Top] When will you be able to issue distribution checks after taking over trust administration for a defined benefit plan? AST is able to issue distribution checks once the plan has been formally accepted by AST Capital Trust, the assets have been transferred, and cash is available in the account.[Top]
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