Schwab To Offer Advisor Trustee Services

November 29, 2000 ( - Schwab Institutional has launched Administrative Trustee services on a pilot basis, allowing independent investment advisors to deliver trust administration services while maintaining investment authority.

The program will be offered through US Trust Institutional Services, a division of US Trust.  Advisors will be able to trade stocks, bonds and mutual funds on those accounts through Schwab.

Administrative Trustee Services will initially be available in 45 states, expanding to all 50 by the end of 2001.

Driving Force

In a press release Schwab Institutional COO Gerald Graves described this capability as “one of the driving forces behind Schwab’s merger with US Trust.”

US Trust Institutional Services is appointed in the client’s trust document as administrative trustee. 

They will provide:

  • safekeeping of trust assets
  • dividend and interest collection
  • income and principal distributions
  • annual account reviews
  • fiduciary accounting and recordkeeping
  • preparation and filing of fiduciary federal and state tax returns

The service is designed for a variety of trust types, including living revocable; newly established irrevocable; future/successor trusteeships; charitable lead or remainder trusts; and irrevocable life insurance trusts.

A special Web site will provide advisors with access to tax lot and cost-basis information and investment activity.  They will also be able to export information directly to Excel. Portfolio values on the Web will be updated daily.

Approximately 30% of the $243 billion in advisor-managed assets at Schwab are already in some type of trust account. Trust accounts represent about 17% of the roughly 900,000 advisor-managed accounts at Schwab.