SDTC offers four basic options for Trust Custody Accounting:
1. Custodian does not interface with Infovisa:
- SDTC establishes an account in the name of the trust, e.g., ABC Trust, dated 1/1/22 with the investment manager using the trust’s custodian. (There can be multiple managers and accounts).
- All marketable securities are in these account(s).
- SDTC shows each account as a line item on its books and through internet access adjusts the market value periodically to reflect accurate trust valuation.
- Custodian provides statements to SDTC.
- SDTC’s trust accounting statement is supplemented by attaching the custodian’s statement for the security detail.
- This is a cost-effective option.
2. Custodian does not interface with Infovisa – Use of entity:
- A second way to deal with this option is to establish an LLC and/or partnership that holds the marketable securities using the client’s and/or investment manager’s custodian.
- The LLC and/or partnership sets up an account with the custodian to hold the securities.
- SDTC’s records show the LLC and/or partnership as an asset of the trust, not the individual securities.
- All security transactions take place within the LLC and/or partnership; therefore, no security transactions will show at the trust level nor will there be reconciliations required by SDTC.
- Custodian provides statements of position to trustee and members and/or partners.
- SDTC will adjust the market value of the LLC and/or partnership to reflect the correct value of the trust.
- All trust-related transactions take place in the trust by the trustee and are reflected on the trust statement provided by SDTC.
- This is a cost-effective option for trustee’s fee.
3. SDTC’s third-party custodian interfaces with Infovisa:
- SDTC’s third-party custodian and Infovisa (SDTC’s trust accounting system) have a direct interface for all transactions and information regarding the securities.
- SDTC’s third-party custodian and Infovisa have representatives assigned to SDTC to work with the trust officers and reconcile the holdings.
- SDTC’s third-party custodian tracks capital calls, mergers, acquisitions, dividends, etc. which interfaces with Infovisa.
- Detailed account statements are provided by SDTC.
- Advent and Financial Technology Integrators are available to assist the money manager.
- Infovisa provides internet access to the trust account which can also be used to manage the assets.
- Please contact us for additional information on SDTC’s third-party custodian.
4. Custodian interfaces with Infovisa:
- SDTC currently works with more than fifty financial institutions that interface with Infovisa.
- Transactions are sent via an interface to Infovisa.
- SDTC reconciles the holdings between the custodial account and the trust accounting system.
- Detailed account statements are provided by SDTC.