Among the financial services that are offered with many banking institutions, there is the bank trust department. Essentially, the function of the department is to handle the administration of trust funds, provide estate planning support, and in some cases, see to the disposition of the estate of a deceased customer.
One of the factors that makes the use of bank trust departments so attractive is that they tend to be somewhat conservative with their management approach. This means that the department is likely to take time to evaluate all options when involved in settling estates, establishing guardianships, or administering trusts that have been set up for the survivors of a major depositor. This methodical approach is often in line with the motivation for establishing the asset in the first place, which was to provide a source of financial support for loved ones, even after a parent or significant other has died.
Along with estate settlement, the department may also provide a number of other agency services, such as functioning as the trustee of record for corporate bonds or administering a pension or profit sharing plan. These types of services are usually associated with companies, although a wealthy private depositor would certainly qualify for this type of support as well. As a means of ensuring that the resources of the bank or banks safely protect the investments involved, the service makes it relatively easy for the client to deal with other matters. As a result, the investor can focus more on family or other business matters, and be less involved in the task of protecting assets that are already established and set on a path of consistent growth.
The bank trust department can also be a viable option for someone who has no next of kin who could manage the assets in the event of a critical illness. Providing the department with authorization to make decisions for whatever time the customer is incapacitated helps to remove the worries of dealing with finances while dealing with some sort of personal emergency or recovering from surgery. From this perspective, it helps to safeguard the financial well being of the client, ensuring that there will be assets to take care of financial obligations for the duration of the recovery period.
