Nev. trust administrator wants to help wealth managers extend relationships. Reno, Nev.-based Garrison Trust Company is out to help independent wealth managers create Nevada-licensed trust companies of their own.

The idea is to give wealth managers ways to attract and retain clients who have reached a stage in their lives when legacy planning becomes an issue by providing trust-administration services -- traditionally the province of bank-based trust departments and other corporate trustees.

"The aging of the baby boomers has created an enormous need for trust services," says Garrison's founder James Penn, who cites industry findings that point to the fact that 40% of Americans with $10 million or more in assets have no will or trust in place -- even though 60% say that caring for family members is a top priority.

Brochure

"The need for trust services -- as well as the opportunities for those who provide such services, therefore -- are enormous," adds Penn.

But it seems that trust companies can be tough to establish, in part because state laws discourage new entrants. But Nevada trust companies are a bit easier to set up and can function "as a trustee in most states and be operated in conjunction with" out-of-state wealth-management firms.

Of course "a bit easier" might not be enough to induce RIAs and independent brokerages to apply en masse for Nevada trust-company licenses, so Garrison has put together a business unit -- Garrison Institutional -- to help the task along.

With guidance from Garrison, financial professionals can evaluate whether a Nevada trust company complement their services. Garrison helps with the application and, assuming it's granted, provides operational assistance to new licensees.

"When we opened Garrison Trust here in 2002, our goal was to provide sophisticated, large-company services with small-firm personal service," says Penn. "We succeeded in our objective, and now want to offer our services to out-of-state financial professionals so that they can provide increasingly important trust services to their clients anywhere in the nation."

Here's a brochure on Garrison's new trust-company business. -FWR

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