(Video) Can You Trust Your Trustee?

"The most important thing is what is the philosophy of my money and my family. That's it. That is the takeaway And from there all sorts of questions. You don't have to go to an attorney, you can use your financial advisor on that and then take those answers to the estate attorney." 

~ Christopher Holtby, Co-Founder, Wealth Advisors Trust Company

Christopher Holtby, a family office veteran with decades of experience helping families avoid stress, confusion and the unintended consequences of using a family member or traditional (bank) trustee. Christopher is co-founder of Wealth Advisor Trust Company (https://www.wealthadvisorstrust.com/). 

I wanted to have a conversation with Christopher - he doesn't go by "Chris - because so many families are unaware of the financial continuity available after they die. Most "principals" - patriarchs or matriarchs - who earn the wealth sit with their estate planner to draw up documents and almost blindly pick a big bank as their trustee. That means their family's financial adviser is out and an unknown person is left to make all decisions regarding their philanthropy and posterity (money they leave to family). The other option is naming a family member who may not have the time and certainly not the expertise but feels obligated (literally) to step in and do what they can. That scenario sometimes puts an undo strain on the family members left behind. People like Christopher change all of that.

By partnering with firms like Wealth Advisor Trust Company we are able to maintain relationships with beneficiaries (typically spouses and children) while leveraging the expertise of longtime trust administrators. We discussed all of this and more during our conversation. 

We discussed

• How to alleviate the burden of being named “trustee”
• How to decide when a traditional trustee (banker or family member) is not a fit
• The advantages associated with some state's (i.e. South Dakota) law
• How working directly with advisors provides an advantage to your family 

Listen into our conversation below:

Jason Howell Company is a family wealth management firm that strengthens the finances of families making the transition from first generation success to family wealth. We envision a world where wealthy families give, grow and govern themselves in ways that enrich their local communities. We do this by reducing the fear, isolation and guilt associated with financial success.

Jason J. Howell, CFP®, CPWA®, CSRIC® and Douglas W. Tees, MBA, CFP® CAP®, CBDA  have spent a lot of time in the Washington, DC area, and are aware that many people who are first generation wealth suffer from a kind of "financial imposter syndrome."  Successful entrepreneurs and family businesses are always looking over their shoulder; government contractors worry about the next contract; former Capitol Hill staffers privately wonder if they should "feel bad" for the money they now make. Imposter syndrome is common among people who work for the many corporate headquarters based in this area as well. These feelings get in the way of properly managing family wealth. We empower them to get organized, build a team of advisors and make decisions.

Our typical "first generation wealth" families include dual income parents who work, save and have just the right amount of fun. For long-time, family owned businesses we focus on much family preservation as we do wealth preservation. 

First generation wealth success stories and family business owners realize that they:

• Need to “do something” with the cash in their checking/savings
• Need to eventually diversify their portfolio away from the family business
• Need an investment strategy for “up” and “down” markets
• Need a plan to mitigate market, credit, inflation, and political risks
• Need to start tax planning instead of just tax paying
• Need to be sure they are choosing the right work benefits
• Need to reduce financial miscommunications between family members
• Need to separate business finances from personal finances
• Need to separate family wealth from individual wealth
• Need a plan to provide space for both family and individual philanthropy 
• Need to plan for money while alive and for what happens after death