Spotlight On: Christine Schmidt, Managing Director Family Office, Trust Point
July 2024 — Invest: sat down with Christine Schmidt, managing director of Trust Point’s family office, to discuss the importance of building relationships with the current and future generations its clients represent when it comes to effective wealth management. The education of the next generation is a top priority.
What have been some of Trust Point’s greatest achievements in the past year?
We’ve had a number of milestones. The company has been around for 110 years, and we celebrated that anniversary. Additionally, we marked five years for the Family Office Division here in Minneapolis and 20 years for our Minneapolis branch. We held celebrations with our clients and professional community partners to commemorate these significant occasions. Beyond these milestones, we’ve continued to grow and hire. We’ve added a number of new staff members, bringing our total to around 100 employees. This growth has provided opportunities to not only bring in new people and expand our team but also promote existing staff and allow them additional development opportunities. We’ve also increased our internship program across all markets, giving new talent exposure to finance and trust office settings. These additional resources benefit our clients by enhancing our services and offering that personalized experience to which they are accustomed. Another major focus has been planning for the upcoming 2025 tax rule changes, helping our clients with strategies when selling a business, gifting to the next generation, and charitable planning. This proactive planning around tax changes has been significant for us this past year.
How has Trust Point’s history led to where it is today, and how has it evolved over the years?
Our growth has always been about relationships, and a lot of our growth has been organic. While we continuously acquire new business, much of it comes from client referrals, which speaks to the trust and satisfaction of our clients. Our 110-year history has been instrumental in building long-term success for our clients. Working with families across multiple generations showcases our long-term vision. We have clients whose families we have worked with for three or four generations, which is a great testament to our service and stability. This continuity and commitment to long-term relationships have played well for us in the marketplace. Being privately held also allows us to remain nimble and flexible, avoiding the pressures that come with being a publicly traded company. Our independence from quarterly earnings pressures enables us to focus on what’s best for our clients, fostering patience and long-term thinking.
What are some of the core services that Trust Point offers, and how do they differentiate themselves from other family office services in the market?
We approach services from a trustee perspective, providing a fiduciary viewpoint that our clients highly value. Whether we are currently the trustee or a future trustee, our clients appreciate the education and relationship we offer. Because we have been in business for so long, we understand the importance of educating the next generation. We spend time with the current trustees or business owners and their families, passing along knowledge through family meetings and educational group sessions. This ensures that the next generation is ready to take on their responsibilities when the time comes. Our focus on education and personalized service differentiates us from other family offices that may not place as much emphasis on these areas.
How does Trust Point implement personalized service for clients across different generations?
We use a team approach to provide personalized service. While I might be the primary point of contact for some clients, they are introduced to various team members with specialized expertise. This allows us to provide tailored, one-on-one meetings to address individual needs while also presenting a holistic view of family wealth management. For example, we can help individual family members with budgeting and financial planning in a safe and supportive environment. At the same time, we ensure they understand the broader family wealth picture, including the previous and future generations’ financial situations. This team-based approach ensures that clients receive the specialized attention they need while also benefiting from a comprehensive understanding of their family’s wealth.
We prioritize frequent and open communication about family goals and values. By understanding these, we can balance protection and growth effectively. Our fiduciary perspective ensures that we always act in the best interest of our clients. We have honest discussions about family values and goals, which makes it easier to balance wealth protection and growth. As long as we keep the family’s values in mind and have direct conversations about them, everything else tends to fall into place.
What strategies does Trust Point employ to stay ahead of industry trends and technological advancements?
We focus on continuous education for our team. This includes staying updated on tax changes, probate and trust rulings, and broader economic trends. For example, we attend conferences such as The Annual Probate and Trust Law SectionConference to stay abreast of new developments. Our strong investment team collaborates on decisions, ensuring a well-rounded approach to long-term growth. This commitment to staying informed helps us navigate industry changes and provide the best service to our clients. Additionally, we implement new technology tools to enhance efficiency and client interactions, which keeps us at the forefront of industry advancements.
We’ve implemented various technology tools to enhance back-office efficiency and client interactions. This includes better data collection to track important milestones and enhance our personalized service. For example, we track key dates like retirement and birthdays, as well as important anniversaries. IT security is also a priority, with measures like dual authentication to protect client information. Despite these technological advancements, we maintain a strong focus on personal relationships and conversations. These tools are meant to support our services, not replace the human element that is so crucial to our work.
Our risk management relies heavily on personal relationships and direct communication. We frequently contact clients to verify unusual requests or potential threats, leveraging our long-standing knowledge of their behaviors. This proactive approach, combined with robust security measures, helps protect our clients effectively. For example, if we receive an unusual email or voicemail, we are not afraid to pick up the phone and ask the client directly. This personal touch is our best protection, ensuring that we can identify and address potential issues quickly.
How does Trust Point integrate sustainability and ethical investing into its strategies?
We have conversations with clients about their values and goals, tailoring investment strategies to align with socially responsible and ethical principles. This customization includes avoiding certain investments and targeting businesses that match our clients’ values, ensuring a balanced and strategic approach. Over the years, it has become easier to target specific investments that align with clients’ values. We can even help clients with direct investments in businesses, assessing whether those businesses’ footprints align with their values. This approach ensures that our clients’ investments reflect their personal and family values.
What challenges does Trust Point face within the Family Office, and how are they addressed?
Managing family dynamics across multiple generations is a significant challenge. We encourage open communication and provide neutral settings for difficult conversations, ensuring everyone has a voice. For instance, we facilitate family meetings away from family events to create a neutral environment for these discussions. Our team approach helps us address these dynamics effectively, fostering understanding and collaboration within families. By taking these conversations out of the household and into a structured setting, we can help alleviate some of the tensions and ensure that everyone feels heard.
What are Trust Point’s efforts to give back to the community and increase philanthropy among the team?
We engage in various volunteering activities, allowing employees to take time away from the office to contribute to the community. Initiatives include placing book vending machines in schools, participating in local clean-up and planting projects, and financial mentoring. Our commitment to community involvement is reflected in our high volunteer hours and recognition as the best place to work. We encourage our team members to get involved in causes they are passionate about, whether it’s mentoring, community clean-ups, or financial wellness education. Our diverse office allows us to have the flexibility to support a wide range of community activities.
What is the outlook for Trust Point in the near term, and what are the top priorities moving forward?
The outlook is positive, with continued growth in the Family Office and other areas. Our focus remains on building strong family relationships, holistic planning, and educating the next generation. The wealth transfer trend presents a significant opportunity, and our emphasis on personalized service and relationship-building positions us well to navigate this transition successfully. We are busy and expect to remain so, with our succession plan involving helping clients with comprehensive planning for their families. This approach is beneficial for both us and our clients.
Moreover, the wealth transfer trend in the industry is where we excel, thanks to our relationship-building and personalized service. There is a significant amount of wealth set to transfer to the next generations, and our ability to build strong relationships and stay in front of these younger generations is crucial. By getting to know these younger family members before they inherit significant wealth, we can ensure they are prepared and confident in managing their assets. This foresight and preparation are key priorities for us moving forward.
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