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What Is a Trust Company?

Updated: Jun 17, 2020


A trust company is a legal entity that acts as a fiduciary, agent, or trustee on behalf of a person or business for the purpose of administration, management, and the eventual transfer of assets to a beneficial party. The trust company acts as a custodian for trusts, estates, custodial arrangements, asset management, stock transfer, beneficial ownership registration, and other related arrangements.


KEY TAKEAWAYS

  • A trust company is a legal entity that acts as a fiduciary, agent, or trustee on behalf of a person or business for a trust.

  • A trust company is typically tasked with the administration, management, and the eventual transfer of assets to beneficiaries.

  • A trust company acts as a custodian for trusts, estates, custodial arrangements, asset management, stock transfer, and beneficial ownership registration.

  • Trusts are managed for profit, which it may take out of the assets annually or upon transfer to the beneficial third party.



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