Donald Kress, President & CEO, Coral Gables Trust Company
In an interview with Invest:, Donald Kress, president and CEO of independent trust company Coral Gables Trust, talked about the firm’s 20th anniversary and its growth to managing $2.5 billion in assets. The company stands out for its personalized, local service, offering tailored solutions like special needs and directed trusts, he said.
What have been some major milestones or achievements from the last year?
We celebrated our 20th anniversary in 2024. This milestone highlights our growth, from humble beginnings 20 years ago to managing over $2.5 billion in assets today. Our growth is accelerating during an exciting time to do business, helping us stay on the radar of influential figures. Having our board of directors, staff, many clients and centers of influence in attendance, along with Vince Lago, the Mayor of Coral Gables, for our anniversary reception was a testament to our deep community connections.
What is your secret sauce? How do you differentiate your services in a competitive market?
We were founded 20 years ago to offer a local alternative to the big fiduciary institutions in the Miami area at the time. People were looking for a company they could work with directly, with management they could speak to, enabling faster decision-making. We focus on personalized service, proximity, and quick decisions — traits that larger institutions often lack due to their size, remote geographic location, and bureaucratic structure. Our flexibility allows us to address unique client needs, such as estate planning or unconventional investments, and to sit down with people personally.
This is a deeply personal business, and we primarily serve individuals rather than corporations. A significant part of our role is understanding client psychology, building trust, and providing guidance during critical life decisions. With new clients, for example, we offer hands-on support to help them navigate decisions involving family and future planning. Being local is a key advantage, as it allows for face-to-face interactions with senior management, helping to build long-lasting trust.
One special service we offer is working with entrepreneurs to manage unique assets through directed and delegated trusts. About 40% of our business involves clients who use outside investment advisors, while we serve as administrative trustees. Another specialty is managing special needs trusts, a complex area requiring legal and regulatory expertise. For this reason, we have specialists trained specifically to manage these trusts. These trusts help families protect loved ones while preserving eligibility for government benefits.
What trends have you observed in the wealth management space?
One trend we’re seeing is the expansion of our client base, with individuals moving to Florida from the Northeast, California, and internationally. These clients often have complex needs, involving closely held assets and sophisticated real estate holdings that they want to sell or pass down to future generations. Our team serves as a core manager while collaborating with specialists in real estate, accounting, and other fields to provide comprehensive solutions.
Another trend is the rise of cryptocurrency. While we do not offer or manage cryptocurrency accounts ourselves, our custodian, Schwab, can handle crypto assets if requested. Similarly, with estate settlements and trusts, we anticipate encountering crypto assets and will approach them with exit strategies due to their volatile nature. Our investment philosophy prioritizes balance and long-term stability across market sectors. Cryptocurrency, like currency investments, is extremely volatile, and we caution our clients about the associated risks.
How are you helping clients mitigate risk through your investment strategies?
As a conservative trust investment company, we encourage clients to be cautious about assuming risk and focus on wealth preservation as they transition from risk-taking during their business careers to risk management. Multigenerational planning is central to our strategy. We emphasize steady, long-term investments, focusing on securities that can withstand the uncertainties of politics and equity markets. Families that adhere to this strategy — by withdrawing no more than 3-4% of market value annually — often achieve sustained generational wealth.
What are your priorities and outlook for the next two to three years?
We’re experiencing significant growth, benefiting from being a long-standing institution and from the area’s appeal as a global hot spot for wealthy individuals. To sustain this growth, we will prioritize hiring high-caliber professionals, balancing the high cost of living with competitive salaries. While this may reduce our short-term profitability, we believe it will benefit us in the long term.
Our expansion includes continuing to expand our offices in Boca Raton, West Palm Beach, and Fort Lauderdale, with plans to extend into the West Coast of Florida, as well as further growth on the East Coast. We’re already in discussions with prospective clients in those areas who would like us to establish a local presence. Our goal is to continue growing organically while maintaining exceptional service quality. We plan to expand carefully, doing what we already do very well.
We have also hired a chief technology officer tasked with implementing advanced technologies, including AI, into our operations. As technology becomes more embedded in everything we do, including banking, it’s important for us to stay ahead of the curve in order to provide the highest level of operational support.
