Trusts and the Turmoil

In today's Wall Street Journal, Arden Dale looks at how bankruptcies and market turmoil affect trusts and corporate fiduciaries:

A merger boom in the late 1990s resulted in the transfer of many trusts, as the acquiring company assimilated the portfolio of trusts into the one acquired.

Nonetheless, it is very important to monitor a merger or other big change at the corporate trustee. It could lead to "service changes on the ground," according to [Robert Sitkoff of Harvard]. For instance, if a merger results in the trust account being transferred to another manager, that person may be further away, less responsive or "simply less known to you," said Mr. Sitkoff.

As for the market turmoil, the bottom-line advice for trust officers is "reach out to your clients."