What does a trust company do?

A trust company in finance acts as a fiduciary for individuals, families, and organizations, managing their assets and investments on their behalf. Trust companies offer a range of services, including estate planning, asset management, investment management, and financial planning. They also often serve as trustees for trusts, managing the assets held in the trust and ensuring that the terms of the trust are carried out according to the wishes of the grantor. In addition to managing assets and investments, trust companies may also provide specialized services such as corporate trust, where they act as a trustee for corporate bonds and other debt securities, and retirement plan services, where they manage the assets of retirement plans such as 401(k)s and IRAs. Trust companies are regulated financial institutions that must adhere to strict fiduciary standards, putting the interests of their clients ahead of their own. They are typically subject to oversight by state or federal banking regulators, and may also be subject to additional regulations and standards specific to the services they provide. Overall, trust companies play a crucial role in the financial industry by providing individuals and organizations with professional asset management and fiduciary services, helping them protect and grow their wealth for the long term.