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Independence: (n.) Freedom from control or influence of others

As an independent trust company, we work with a client's attorneys, accountants, and financial planners to achieve desired results. We do not manage investments, thus assuring the professional advisors that we are not in competition with them. Unlike bank trust departments, Commonwealth Trust Company has no interest in taking over management of a client's funds, which is the greatest protection for the professional advisor. We are in the business of building relationships with our clients and their advisors.  At Commonwealth Trust Company, we complement a client's advisors, we do not compete with them.

Is the "independent" trust company you are considering truly independent?

Professional advisors are often shocked upon learning that they are losing their client's business to another broker referred by the trustee. Some trust companies claim independence while in fact forming joint ventures and/or referral relationships with national securities firms. We recommend asking the following questions when inquiring about your prospective trustee's independence:

  • Is your company's stock publicly traded?
  • Do you have any institutional investors, and if so, who are they?
  • Do you sell any particular brand of investment or insurance?
  • How are you compensated for your services?
  • Do you have any alliances with any particular brokerage house or planning firms?
  • Have you ever been involved in a merger with another company or is there a possibility of merging with another company in the near future?
  • Are you a subsidiary of another corporation, or do you have any subsidiaries involved in other types of business?

At Commonwealth Trust Company, the answers are simple and straightforward. The officers, directors and employees have owned 100% of our stock since 1931. We do not sell, nor are we looking to sell any proprietary products. We are compensated for our services through annual fees. (For a more detailed breakdown of our pricing, please contact us via email at ctc@comtrst.com.) We work with advisors and brokers from all over the world because of our independence, and we plan to keep it that way. Our company flourishes because of the high-quality services we provide with an independent and impartial attitude, not because of any particular alliance or joint venture with outside firms. Because of the closely-held ownership of our stock, Commonwealth Trust Company will remain independent, even in the ever-changing world of bank mega-mergers. Once again, at Commonwealth Trust Company we look to complement, not to compete.

How do I establish a trust at Commonwealth Trust Company?

Contact Jim McMackin at jmcmackin@comtrst.com or Peter Horty at phorty@comtrst.com.

Copyright 2008 Commonwealth Trust Company. This Information Is Not Meant To Convey Legal Advice.