Trust company is an organization, specifically bank for business transactions, structured to execute the responsibilities of managing financial assets of trustees. This kind of organization is generally owned by:
- Self-regulating partnership firms.
- Commercial bank.
- Or by a law practicing firm.
Normally these kinds of institutions have expertise of working as fiduciary agents for other companies. Even though, it is not always necessary for the trust company to implement all the authority that they are granted. Interestingly, under certain jurisdictions, a trust company won’t be executing all of its duties and according to other law circles, the identity of trust companies and whether they should be considered as a trust company is uncertain. Hence the term trust company should be lightly considered.
Working Mechanism of a Trust Company
The companies are called as such due to their capability of administering fiscal assets on the behalf of other corporations. But do they do that? Well, a legal document known as Trust is prepared that consists of the names of the recipients and the prescribed format for the utilization of the wealth.
The trustee will be supervising funds through, conducting record keeping or book keeping, wealth management, constructing accountings, bill payments, undertaking medical expenditures, charities and donations, any inherited or ancestral wealth or any other kind of allocation of revenue and capital.
Taking the aid of a trust company depends on your own research and findings but do keep in mind the kind of jurisdiction that it follows.