6 Steps to Hiring the Best Trust Fund Administrator



A trust fund is an entity you open to hold assets or properties on your behalf. However, you might find it hard to manage and follow up on what happens with the trust fund. Therefore, the best thing is to hire a trust fund administrator who manages the trust fund on your behalf and maintains receipts and payments from your trust fund. As convenient as it sounds, you need to ensure you get the best administrator to avoid losing your assets. With these easy steps, you can get yourself the best trust fund administrator around.

1. Do Your Research

We all love when our money and properties are organized and safe. Therefore, before you hire a trust fund administrator to run and manage your trust fund for you, ensure you get the best. The first step to doing that is conducting research, both online and physically. Research all the trust fund administrators near you and compare their services. Consider if they offer the services you are looking for and how well they deliver those services. For all online businesses, look at their customer reviews to see what previous clients said about them.

2. Consider the Type of Fund Administrator They Are

You will find different types of trust fund administrators, some who work independently and some who work under certain financial entities. Another type of fund administrator you will find is an SPV. Special Purpose vehicles, also called unique purpose entities, are subsidiary companies created by parent companies to eliminate financial risks. They have their organizational structure, legal structure, assets, and liabilities.

If the parent company collapses or goes bankrupt, the SPVs still operate, meaning that you still have your funds intact if you choose them as your administrator. An Assure SPV is a full-service SPV that allows you to pool your funds into your SPV and allows that investment vehicle to buy and manage specific assets. They also prepare your taxes for your trust fund, which is more time-effective for you.

3. Look at Their Credentials

Looking at the credentials of your trust fund administrator helps you determine if they have the right competence, knowledge, and skills to manage your funds. It also enables you to determine if they have the proper certifications and permissions to run that business.

Look if they have the licenses to run the business, and if they do, how recent they are. Determine if they have insurance and also ensure that it is up to date. You can complete your search by looking them up on the relevant boards or documents. If they work for an organization, verify if the organization exists and its legitimacy in doing such businesses.

4. Look at Their Experience

How long the trust fund administrator has been in the field and how many clients they have worked with determines the quality of services you will get from them. Ask them when they started the practice and how many clients with needs similar to yours they have worked with.

You can also ask them their success rate and ask if any of their clients have ever had with them, and if yes, how they handle it. You can also ask them for contacts of some of the clients they have worked with so that you can ask about their services. Legit administrators will not hesitate or refuse to give you the contacts.

5. Consider Fee-Only Fund Administrators

Different trust fund administrators have different ways of accepting payments. Some of them are paid on commission by the organization they work for. Such administrators advertise themselves as “free.” However, they may not give you the best services, because their main aim is to sell the benefits of the company.

Go for administrators who you pay from your pocket. It might be expensive, but you will get the best value for your money. Fee-only administrators might request that you either pay them hourly, per-plan, flat annual fee, or depending on the size of your trust fund. Working with fee-only administrators is also better because it minimizes any financial and compensation conflicts with third parties.

6. Set Up a Meeting

In addition to doing your research online, you need to have a one-on-one talk with the people you consider working with. That will tell you a lot more than online research did. It helps you identify how hospitable they are and how committed they are to satisfy your needs.

Before setting up the meeting, prepare a list of questions to ask them and observe how they answer you. That tells you how your communication with them will be like in the future. It also helps you know their level of patience and willingness to serve you. Finding a trust fund administrator is not simple, but it is essential. You have to put in a lot of effort and time if you are to get the best.


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