How to Establish a Direction Trust
How to Establish a Direction Trust
By: Wilmington Trust

Robert Haas, a resident of Solon, Ohio, has trusted his financial advisor to manage his family's assets for over 20 years. The owner of a successful furniture store chain, Mr. Haas would like to set up a trust for his son, Henry, that allows his financial advisor to manage the trust assets until Henry turns 25 years old.

Mr. Haas' advisor recommends he establish a Direction Trust in Delaware in order to take advantage of the investment direction feature allowed by the state, as well as a host of other tax advantages and flexible benefits adopted by that jurisdiction.

Haas' financial advisor contacts outside counsel to draft the agreement and a trust company in the state of Delaware to serve as trustee. Together, Mr. Haas, his advisors, and the trust company develop a trust that does three things:

Mr. Haas can, in turn, delegate the investment advisory functions to his long-term investment advisor through an agreement separate from the trust. Thus, his new irrevocable Direction Trust enables him to maintain the flexibility of having his assets managed by his hometown financial advisor.

This article is for informational purposes only and is not intended as an offer or solicitation for the sale of any financial product or service or as a determination that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situations, and particular needs. This article is not designed or intended to provide financial, tax, legal, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of a professional advisor should be sought.

Speak to an expert

Office Locations
Looking for a Wilmington Trust Location? We are positioned to help you globally.

Site Map  |  Privacy / Security  |  Terms of Use  |  Help  |  Careers  |  Wilmington Trust Investment Advisors  |  Wilmington Funds  |  WTRIS  |  M&T Bank  |  Press Releases  |  Login

Need help, visit our Contact Us page.
© 2014 Loans, credit cards, retail and business deposits, and other business and personal banking services and products are offered by
M&T Bank. Investment Services, Wealth Advisory and Corporate & Institutional products and services are offered by Wilmington Trust Company,
operated in Delaware only, and Wilmington Trust, N.A. International Corporate & Institutional services are offered through our international affiliates.

 Investments: • Are NOT FDIC-Insured. • Have NO Bank Guarantee. • May Lose Value. 
Brokerage services and insurance products are offered by M&T Securities, Inc. (member FINRA/SIPC), not by M&T Bank, Wilmington Trust or Wilmington Trust NA.

M&T Bank and Wilmington Trust, N.A. are Members FDIC and Equal Housing Lenders NMLS #381076 Equal Housing Lender