Private Label Trust Services
Financial institutions have long recognized two important facts. First, it is less expensive to retain existing customers than to obtain new ones. Secondly, trust customers and the revenues they generate tend to be “sticky”, that is, they are less likely to leave the financial institution than other customers. Indeed, studies have shown that trust accounts have an average longevity of 15 to 20 years. Thus, many financial institutions have found that the ability to act as trustee enables them to retain important wealthy family relationships through multiple generations, thereby creating a stable revenue stream over a long time period.
Building a trust company organically from the ground up requires significant financial and human resources. Moreover, it can take years for the venture to become profitable. By using New York Private Trust private label trust services, investment firms, banks and other financial institutions without trust powers can have a branded trust services delivery vehicle up and running with nominal capital outlay and no additional infrastructure. By converting their wealthy family relationships into trust relationships, clients can generate revenue at a fraction of the cost of an organically grown trust company.
Full Range of Fiduciary Services
New York Private Trust offers a full range of trust and estate administration services on a private label basis. These include the administration of trusts and estates, custody of fiduciary assets, preparation and filing of tax returns, complete recordkeeping, fiduciary oversight, compliance with regulatory agencies, and maintenance of client relationships.
Delegated or Directed Investment Management
Depending on your particular circumstances, New York Private Trust can delegate the investment function for fixed income and equity management to your institution or investment adviser designee. New York Private Trust Company will create an operation division. All fiduciary services will be performed by New York Private Trust Company at its Wilmington, Delaware office. All statements and client communications, including the name of the entity, will be privately labeled with the private label client’s institutional branding.
Our fiduciary staff has considerable experience administering sophisticated estates and trusts with complex holdings. We understand that wealth is often created by concentrated asset positions in stock, real estate or closely-held operating businesses, which the family or individual wishes to continue to hold in a trust or estate. Unlike many corporate fiduciaries, we do not feel obligated to sell such assets immediately. In particular, trusts holding real estate have access to the Milstein family’s world-class experience in developing managing and operating real estate. Through other affiliates, we have access to sophisticated investment and business specialists’ expert in evaluating on-going businesses, hiring and overseeing management, and determining how to optimize value.