Financial Word of the Week: Corporate Fiduciary
A corporate fiduciary is a financial institution that exercises fiduciary‡ responsibility for the benefit of an individual or individuals. Mostly commonly, it’s children and the elderly who need fiduciaries. A fiduciary exercises a high standard of care in managing another’s money or property. Fiduciaries can be known by many names – trustee, executor and conservator are a few common examples of fiduciaries in an estate planning context. For more, read our post on “What are fiduciaries and why do you need them?”
Corporate fiduciary vs. individual fiduciary
Some of the advantages to hiring a corporate fiduciary over an individual fiduciary include gaining the institution’s financial expertise, neutrality, longevity, and high standard of care. Corporate fiduciaries have these pros:
- many years of experience in managing and investing funds for clients,
- no ties to any one beneficiary, and so will be in the best place to follow the grantor’s wishes,
- longevity that eliminates concerns that death or disability of an individual fiduciary will interfere with management of assets, and
- will exercise a high standard of care, as they have internal safeguards and audits to ensure compliance to state and federal regulations governing fiduciary conduct.
Regardless of the nature of the role, the aim of a corporate fiduciary is to make the best financial decision for the beneficial owner of any assets under its supervision.
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UMB Financial Corporation (Nasdaq: UMBF) is a financial services holding company headquartered in Kansas City, Mo., offering complete banking, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona. It also has a loan production office in Texas. Subsidiaries of the holding company include mutual fund and alternative investment services groups, single-purpose companies that deal with brokerage services and insurance, and a registered investment advisor that manages the company's proprietary mutual funds and investment advisory accounts for institutional customers.