WHY CLIENTS UTILIZE

 

Commonwealth Trust Company

 

An Independent Delaware Trust Company Established in 1931

 

Benefits of Delaware Trust Law

How to Take Advantage of Delaware Trust Laws

Corporate Versus Individual Trustees

 

The Typical Trust Structure.  Delaware law permits the appointment of investment advisors (the advisor may even be the settlor of the trust), trust protectors and distribution advisors, none of whom are required to be residents of Delaware, so long as a Delaware trust company is serving as trustee. Commonwealth Trust Company, as your independent trustee, requires only that you utilize an independent investment advisor.

 

Why Clients Utilize

Commonwealth Trust Company

 

Commonwealth Trust Company has been in business since 1931 and during that time has served as trustee for virtually every type of trust.  Commonwealth has served as trustee not only for traditional assets, such as marketable securities and publicly traded stocks and bonds, but for nontraditional assets such as oil and gas, stock of closely-held corporations, and other non-traditional entities.

 

Over the years we have concentrated, when serving as trustee, on implementing the provisions of

the trust. Our duties as trustee typically include document review, distribution review, accounting preparation and review, tax preparation, maintenance of trust records, and response to inquiries from the settlor, beneficiaries and third parties.  As to the management of investments, both traditional and non-traditional, we rely on the direction of independent investment advisors appointed by the settlor. This allows the settlor to continue to work with his or her own advisors, developed over his or her lifetime, while allowing us, as trustee, to carry out the terms of the trust in the most expeditious manner. This is what makes us an independent trustee and what makes our administration of the trust unique.

 

Another important fact is that Commonwealth Trust Company is a Delaware Trust Company.  Delaware has a reputation for being the most friendly state for businesses and the protection of individuals’ assets, two facts that are of the utmost importance when selecting the situs of a trust.  We receive referrals from professional advisors located across the country desiring to establish Delaware as the situs of their trusts.

 

Benefits Of Using A Delaware Trust Company

 

There are many reasons why an individual can benefit from using a Delaware trust company as his or her trustee rather than using a trustee in his or her home state. First, because we are not in your community, your clients will have greater privacy and anonymity both within their community and outside of it.  One of the advantages of Delaware trust law is that there is no registration of trusts.

 

Selecting Commonwealth Trust Company as your trustee will also allow you to provide your clients with the benefits of Delaware law.  With minor exceptions, Delaware law imposes no tax on trusts for non-resident beneficiaries, has no rule against perpetuities (other than as to real estate), and provides a high degree of protection against creditors. Also, as stated previously, under Delaware trust law there are rules that allow the use of separate investment advisors to manage the trust assets. The settlor can also elect to include a separate trust protector and distribution advisor to advise the trust.

 

A Final Assurance To You In Your Relationship With Commonwealth Trust Company

 

A final assurance to you in your relationship with Commonwealth Trust Company is that we are only in the business of serving as trustee.  We do not directly manage assets under trust – the ultimate protection. Your relationship with Commonwealth can put you on the same footing as the large banks that have located their trust operations in Delaware to take advantage of Delaware’s unique trust provisions.

 

When Considering a Corporate Trustee, Consider

Commonwealth Trust Company

 

An Independent Delaware Trust Company Established in 1931

 

The Delaware Advantage

 

·         Delaware law allows the formation of asset protection trusts which shield assets from certain classes of creditors and allow the settlor of the trust to remain a potential beneficiary.

 

·         There is no Delaware income tax on ordinary income or capital gains accumulated or distributed for non-resident beneficiaries, and if a Delaware trust company is named as administrative trustee, income tax in the beneficiaries’ home state may also be avoided.

 

·         There are no Delaware intangible personal property taxes, and no Delaware death taxes, except in limited circumstances.

 

·         Delaware allows the creation of dynasty trusts which can last indefinitely without imposition of additional estate or gift taxes.

 

·         Trust accounting rules are streamlined and may be eliminated if the settlor so desires.

 

·         Delaware law recognizes spendthrift trusts and provides virtually complete protection from claims of creditors for a trust beneficiary, especially if the trustee is a Delaware bank or trust company.

 

·         Delaware does not require trust agreements to be filed or recorded, and if they are subject to litigation, the Chancery Court has been willing to place the court record under seal.

 

·         Delaware permits the settlor of a trust to limit the number of beneficiaries who are to receive notice of the trust, both during the settlor’s lifetime and after his or her death.

 

·         Delaware permits the settlor of the trust to establish his or her own investment policy in the trust instrument, and permits the use of investment advisors of their own choice to advise the trustee without breaching the trustee’s fiduciary responsibility.

 

·         The Chancery Court has a history of seeking to determine the settlor’s wishes and the settlor’s intention, as demonstrated in the trust instrument.

 

 

About Commonwealth Trust Company

 

Commonwealth Trust Company is a non-depository trust company that serves as Corporate Trustee for various types of Delaware situs trusts including:

 

  • The Delaware Dynasty Trust
  • The Delaware Asset Protection Trust
  • Life Insurance Trusts
  • GRATS
  • Charitable Trusts

 

What makes our service unique is that we only perform trust administration, offering you the resource needed to take advantage of Delaware trust law while working with your current trusted advisors and never replacing them.

 

Since we only perform administrative services and do not provide investment services, our structure permits you to use your existing investment advisor. Delaware law also permits you to use a distribution advisor and a trust protector of your choosing.

 

We are professional trust administrators with a well trained, responsive staff. Our goal is to provide our clients with the best service experience.

 

With our staff of highly skilled professionals, Commonwealth Trust Company offers you and your client experience and integrity. We have been engaged in trust services for over 70 years gaining extensive expertise in business and fiduciary matters. You will benefit from our expertise and will find we respond quickly and efficiently to all trust matters.

 

 

*This information is not meant to convey legal or tax advice.

You should contact the appropriate advisor on these matters.

 

 
Copyright 2008 Commonwealth Trust Company. This Information Is Not Meant To Convey Legal Advice.