With Envestnet’s Trust Services Exchange, Advisors Have A Powerful Tool to Transfer Wealth

As we have written about before, the next ten years offer a huge opportunity to financial advisors who are ready and prepared to grow their business. U.S. household assets are expected to increase from $87 trillion to over $140 trillion by 2030 – of which nearly $64 trillion will be in investable financial assets – leaving between $150 billion and $240 billion in wealth management fees available for advisors to potentially bring under their management.¹ What’s more, millennials will soon come into an unprecedented transfer of wealth, as they inherit $68 trillion in assets from their parents over the next 20 years.²

Estate planning presents an opportunity

Much of this opportunity for financial advisors will involve trust and estate planning. While once thought of as something only the wealthy required, many more clients are realizing that a clear estate plan helps to ensure their assets are distributed to beneficiaries with minimal hassle and tax burden.

Smart advisors are using estate planning to grow and differentiate their business as well. By offering trust and estate planning services, advisors are empowered to develop relationships with the next generation and to continue to manage trust accounts, which have an average lifespan of 15 years.³

With the Trust Services Exchange, Envestnet is ready

Registered investment advisers and broker-dealers in the Envestnet network now have the option to manage trust and estate planning accounts for their clients thanks to an integration with Trucendent.⁴

First and foremost, the Trust Services Exchange keeps the advisor in the driver’s seat, on behalf of their clients. It provides a network of attorneys and trust administrators that work behind the scenes with advisors to handle trust account documentation, asset transfers, and regulatory compliance navigation. Once a trust account is opened, the advisor, client, attorney, and administrator work together on the Exchange’s platform, where the advisor will maintain the ability to manage the assets of the client. The Trucendent technology generates all the required documentation to manifest the trust.

Secondly, the Trust Services Exchange, combined with Envestnet’s technology, helps to ensure that advisors aren’t spending valuable time piecing together the solutions their clients need, nor are advisors required to have perfect expertise in estate planning to manage a wealth transfer process. Both clients and advisors can benefit from the integrated platform.

“When you combine recent rhetoric on Capitol Hill with the fact that we’re approaching year end and still managing through a pandemic, today becomes a critical time to think about estate planning,” said John Yackel, Chief Executive Officer and Co-Founder at Trucendent. “Trucendent is the only business solution available to advisors that provides guidance, advice, documentation, and execution through the entire lifecycle of the estate planning process, involving independent professional attorneys and trustees. We believe the process of estate planning enables advisors to form deeper and more meaningful relationships with clients and their families.”

Visit the Trust Services Exchange page to learn more.

Sources:

1. Val Srinivas and Urval Goradi, “The future of wealth in the United States,” Deloitte.com, last modified on November 9, 2015, https://www2.deloitte.com/insights/us/en/industry/investment-management/us-generational-wealth-trends.html.
2. David Robinson, “Here’s how to prepare your heirs for the $68 trillion ‘great wealth transfer,’” CNBC.com, last modified on February 25, 2019, https://www.cnbc.com/2019/02/22/how-to-prepare-your-heirs-for-the-68-trillion-great-wealth-transfer.html.
3. John Yackel “Grow Your Practice with Trust and Estate Planning” RIA Channel, August 30, 2021, https://www.riachannel.com/grow-your-practice-with-trust-estate-planning/?=Trucendent.
4. Nicole Casperson, “Envestnet advisers can manage trust and estate planning accounts for their clients thanks to an API integration with Trucendent” Investment News, February 26, 2021, https://www.investmentnews.com/envestnet-rolls-out-trust-services-exchange-203258

The information, analysis and opinions expressed herein are for informational purposes only and do not necessarily reflect the views of Envestnet. These views reflect the judgment of the author as of the date of writing and are subject to change at any time without notice. Nothing contained in this piece is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.

This document refers to information products or services that may be in development and not yet available. Accordingly, nothing in this presentation should be construed as a representation or legal agreement by Envestnet to make available specific products or services (including, without limitation, concepts, systems or techniques.) Envestnet is not a law firm and as such, does not provide legal or regulatory advice or opinions to any party or client. You should always consult your relevant regulatory authorities or legal counsel as applicable.