The New View of Trusts

FTI's New View is an innovative approach to analyzing the risks associated with trust administration.

We help you recognize grantor and beneficiary expectations.  We also help you track policy, regulatory and legal requirements.

You will be able to understand and control the risk in your trust portfolio, and create standardization and automation of routine decisions, allowing you to provide personalized services where it provides a perceptible higher level of service and adds value to the trust.

New View will reduce your risk and improve the risk-adjusted profitability of your current business.

We provide this pathway in three steps:

  • Understanding the current and likely risks in the administrative process

  • Mitigating and managing the legacy challenges

  • Instituting new processes

 

Institutional risk happens at three levels:  Design, Implementation and Execution:



     

Design Risk comes from the actual terms and history of the trusts in your portfolio, as well as the external regulations and laws governing portfolio administration

Design risk is the hardest to understand due to the interactions between complex instruments and the variability from one trust to another.  We believe the only way to get an understanding of these is to combine the expertise of experienced practitioners in the field with automated expert tools to analyze the elements that contribute to the risk.

The outcome in this level often leads to new institutional practices for risk acceptance and management, and to sophisticated adjustment and mitigation processes.

Implementation Risk occurs when trust plans do not address the trust's intent.  The underlying design and goal of a trust is often so vague that it allows misdirection, misinterpretation and a frustration of the estate plan.  The underlying design may run into regulatory or institutional conflicts that impact how the plan is implemented.  These risks present fundamental problems to the fiduciary and expose it to liability. 

Once these risks and liabilities are exposed, mitigation processes must be employed to get the trust back on track.  The findings in this level can lead to new planning approaches and controls, or institutional policies about the types of implementation elements that should or should not be incorporated into a plan.

 

Evaluating Execution Risk requies an understanding of which processes and controls expose an institution to performance or operational risk, and thereby illuminating where the fiduciary needs to institute controls.  It is at this level that new industrial processes can have the greatest impact on the organziation's performance.

FTI's tactical mitigation should be the next step, helping to make the changes part of the fiduciary's permanent process.  This is done via our New View enterprise software system

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The Risk of Trusts

The New View of Trusts

The New View System

  • Step One-Enter Info
  • Step Two-Design the Trust
  • Step Three-Registration Service
  • Step Four-Implementation Map
  • Step Five-Legal Constraints
  • Step Six-Ongoing Execution

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  • Over the next 50 years $45 trillion will be transferred to heirs and charities via estates - the largest wealth transfer in history.

    How much will be siphoned by trustees...lost to estate taxes...lost to administrative fees or lawyers fees...other fees?

    How well will these trusts be managed?

    What kinds of investments should be made with the money under management?

    Trust, Are You Kidding

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