A regional Midwest law firm was looking to improve and expand its estate planning practice. It lacked the infrastructure of a fully functioning trust business that would allow its lawyers to act as fiduciaries in a manner that would assure a high quality of service and adherence to the firm’s professional standards. Dependence on banks and trust companies for account administration and operations was threatening to erode client relationships.
The firm was also looking for ways to supplement its revenue. It viewed the provision of full-service fiduciary services as a way to create recurring revenues, provide better client service, and strengthen client relationships in a manner consistent with the firm’s quality controls.
Lacking the resources and experience to implement its vision, the law firm turned to Nixon Peabody Fiduciary Services for help. Our experienced team worked closely with the firm to develop a plan for establishing a centralized and automated system of custody and fiduciary accounting, walking our client through every step of the process. We implemented the optimal trust accounting system, established internal controls and procedures, coordinated the creation of a custody relationship and account files, designed customized statements for its clients, and installed a commission system to quantify attorney realization. We trained its staff on the new system, processes and procedures, and worked with the firm’s investment counsel to assure that the system met all client and regulatory requirements.
To successfully launch the new fiduciary business, our team helped the firm create a nominee partnership to serve as the holder of record for all securities and as a conduit for all cash and asset transactions. We further assisted our client in establishing a single omnibus account in the nominee partnership registration at the custodian bank of choice.
Our client built its fiduciary business one account at a time. Within two years, its business grew to 125 accounts and $100 million in assets. The efficient system of custody and fiduciary accounting we helped it implement and continue to maintain has allowed it to achieve high levels of profitability while providing outstanding service to its clients.