Process of Working with Wealthspire Trust
What is the process for opening an account?
Our trust team must review the trust documents and other associated documents (such as statement of assets, family tree, distribution expectations, etc.), prior to proposing fees and accepting a new trust relationship. Once all required documents have been reviewed, Wealthspire will communicate with the client or attorney on whether we can accept, and if so, what fees would apply. After acceptance of the quoted fees and receipt of all necessary Wealthspire Trust new account opening documents, Wealthspire Trust will execute the trust document and assume the appropriate role. Wealthspire Trust will work with the financial advisor team to establish investment accounts and transfer trust assets, as applicable.
What is the process for requesting (discretionary) distributions?
Requests for discretionary distributions must be made in writing (email is sufficient). The request doesn’t need to be long but should include any and all supporting documentation and rationale for the distribution request. The request should describe why the distribution is in accordance with the terms of the trust. Additional information may be requested by the Wealthspire Trust Advisor to help the decision process.
If the beneficiary lives in another state, in what state is state income tax applied?
If it is a “grantor trust” for income tax purposes, the beneficiary will not have any tax liability.
If a “non-grantor trust,” the beneficiary may be taxed on distributions from the trust. A beneficiary will receive a K1 for any year in which they receive trust distributions. The K1 will show the calculations for what must be included on the beneficiary’s personal tax return. State tax will apply based on the beneficiary’s state of residence.
Trust taxation is a complicated matter and should be discussed with a professional tax advisor for each specific, individual situation.
What is the process for directing Wealthspire Trust on investments?
The trust document will prescribe what is required to invest trust assets, who is responsible, and applicable restrictions, if any.
For a directed trust, the party with investment authority must give Wealthspire Trust investment direction in writing for any trust assets. The investment direction must be provided by the “trust advisor” named within the trust document.
