What is the primary role of trust companies in wealth management?

The primary role of trust companies in wealth management is to administer trusts and estates. This function involves managing the assets placed in trust on behalf of beneficiaries, ensuring that the wishes of the trustor are honored. Trust companies provide fiduciary management, which requires them to act in the best interests of the beneficiaries, offering services such as asset management, distribution of income, and oversight of compliance with legal and tax obligations.

By effectively administering trusts and estates, trust companies help clients manage complex financial situations—especially in terms of estate planning and wealth transfer strategies. This role is fundamentally important in preserving wealth across generations and ensuring that the financial legacy is handled according to the trustor’s intentions.

In contrast, although providing loans to families, offering tax preparation services, and making investment decisions can be part of overall wealth management, these services are not the core functions of a trust company. Trust companies specifically focus on fiduciary responsibilities and the careful administration of the assets they manage.