Cumberland Trust

Choosing a neutral trustee is a proactive step in preventing family disputes and ensuring that your client’s wealth is managed responsibly and impartially. Here's why choosing an independent corporate trustee is essential for preserving peace and ensuring the trust's objectives are met effectively. 1. Conflicts of Interest: When a family member is appointed as a trustee, their personal interests and relationships can conflict with their fiduciary duties. They might face pressure from other family members to make decisions that benefit specific individuals rather than adhering to the trust's terms and the best interests of all beneficiaries. 2. Lack of Objectivity: Family members may struggle to remain objective, especially in emotionally charged situations. 3. Strain on Relationships: The responsibility of managing a trust can strain relationships within the family. Disagreements over trust management, perceived favoritism, or dissatisfaction with decisions can lead to resentment and long-lasting rifts among family members. 4. Limited Expertise: Serving as a trustee requires a thorough understanding of trust administration, legal obligations, and financial management. While it might seem convenient to have a family member oversee the trust, this arrangement can inadvertently create tension and challenges that could disrupt family harmony.

Caroline Bradshaw, SVP & Managing Director, Trust Administration, Heather Savage, SVP & Business Development Officer, and Will Ellison, Business Development Officer, travel to Columbia this week for the University of South Carolina Joseph F. Rice School of Law Estate Planning Conference! Cumberland Trust is proud to sponsor this event! #EstatePlanning #TrustsandEstates

One of the most rewarding aspects of trust administration is working with a client’s trusted circle of advisors. Wealth transfer across generations is a team effort, and we have some best practices for working with estate planning attorneys, financial advisors, and tax professionals. 1. Create a Unified Vision 2. Define Roles and Responsibilities 3. Establish Clear Communication Channels 4. Utilize Each Other’s Expertise 5. Present New Ideas Partnering with professionals is about more than just working together; it’s about building strong, effective relationships that enhance the client’s experience and outcomes. By following these practices, collaboration between team members is productive, and the clients receive comprehensive, well-coordinated services.

As Baby Boomers continue to exit the workforce, transferring wealth to the next generation is a pressing concern. With an estimated 12 million Baby Boomers owning businesses and 70 percent expected to retire within the next 15 years, the value locked in these companies is truly staggering, reaching into the trillions of dollars. Notably, a significant portion of high-net-worth individuals' portfolios, approximately 55 percent, is comprised of illiquid assets such as real estate, mineral interests, farmland, and closely held businesses. While liquidating these assets may seem like a straightforward solution for wealth transfer, it does not always align with the desires and needs of every family. Many families wish to ensure responsible management and ownership transfer of these unique holdings to future generations. Early planning is crucial for a smooth transition, allowing sufficient time to train and prepare successors. Many families prefer a trustee structure that allows for their choice of asset manager to manage their unique holdings, maximizing asset value and promoting stewardship. Trusts facilitate substantial ownership transfers to younger generations while retaining management control. Cumberland Trust's Special Assets team has extensive experience administering unique holdings and works in conjunction with external asset managers chosen by clients. This approach allows clients to remain involved in asset management, whether it's selecting a property manager for a commercial property or managing a family's timberland, farm, or mineral interests.

We want you to add to your team, not your worries. Our commitment to impartial, independent trust and estate administration ensures wealth preservation and harmony and alleviates family politics. We aim to complement your wealth management services without the concern of client assets slipping away to a trustee who also handles investment management. The best part? Seamless integration with your current setup. No more distractions by the nuances of trust administration. Let us handle the complexities, so you can devote more time to strategizing for clients: https://hubs.ly/Q02SdW6b0 #CumberlandTrust #FamilyFirst #WealthManagement #TrustAdministration #FinancialPlanning

For Baby Boomers and business owners approaching retirement, strategizing the transfer of wealth should be top of mind. With nearly 12 million Baby Boomers owning businesses, and 70% set to retire in the next 15 years, trillions of dollars in wealth are at stake. Special assets like real estate, farmland, and family businesses comprise 55% of high-net-worth individuals' portfolios. While liquidating these assets might seem like the only option, many families prefer to pass on the management and ownership responsibly. Explore how we can support your wealth transfer goals: https://hubs.ly/Q02SdrbQ0

True happiness and fulfillment come from contributing meaningfully to the world. This is a universal truth that resonates deeply. Especially within the context of managing family wealth across generations. For parents navigating the complexities of wealth inheritance, the message is clear. Shielding your children from life's trials doesn't safeguard them. It stifles their ability to forge their path and erodes their self-belief. True empowerment comes not from bailouts but from the ability to navigate independently. Encouraging heirs to find their purpose and contribute to society leads to personal fulfillment and ensures the responsible stewardship of family wealth. Explore the strategies for navigating wealth inheritance in this blog: https://hubs.ly/Q02JZx540

Cumberland Trust revolutionizes trust administration by separating asset management from trust and estate services. This allows financial advisors to focus on strategic investment management. Considering partnering with Cumberland Trust? ⚫ Our exclusive focus on trust administration guarantees a service untainted by asset management biases. This clear distinction lets us prioritize your interests ⚫Be a part of a partnership that values communication, expert knowledge, and tailored planning ⚫ Tailored to fit your unique requirements, our capabilities include many specialized trust and estate services, setting us apart in the industry #CumberlandTrust #TrustAdministration #WealthManagement #FamilyLegacy #InnovativeSolutions

Protecting their legacy is a priority for many clients, especially those with significant assets and exposure to potential liabilities. In estate planning, Domestic Asset Protection Trusts (DAPTs) are a potential solution to preserve, safeguard, and provide for future generations. DAPTs can help shield assets from various risks, including lawsuits, bankruptcy, or divorce proceedings. These trusts may be beneficial for high-net-worth individuals and business owners whose professional roles can expose them to heightened liability concerns. Tennessee introduced its own iteration of a DAPT in 2007, known as the Tennessee Investment Services Trust (TIST). The TIST allows grantors to retain a degree of control and access to their assets while simultaneously safeguarding them from potential creditors. Key requirements for establishing a TIST for residents of any state include: - The trust must be irrevocable. - It must appoint a qualified trustee based in Tennessee. - It must expressly incorporate Tennessee law. - It must contain a spendthrift clause. - A qualified affidavit is required upon creation and initial funding. For clients who want to preserve their wealth and ensure a secure legacy for their beneficiaries, the TIST presents a compelling solution.

Often grantors name a family member or close friend as trustee whom they believe will best understand the nuances of their wishes. Unfortunately, that individual trustee might not have the time, expertise, or resources to fully administer a trust. Many individual trustees have to hire expensive outside managers and administrators to handle the workload. A corporate trustee operating as a “directed trustee” allows the grantor or the beneficiaries to use their preferred financial advisor to handle the investment management of the trust’s liquid assets. Utilizing a directed trustee eliminates the inherent conflict of interest that can exist when a trustee also manages the assets of the trust. Under this model, financial advisory firms add an additional layer of safeguards to trust accounts by overseeing invested assets and account activity. Avoid the challenges associated with individual trustees and consider the benefits of an independent, directed trustee with expertise in trust administration.