Rodney McLauchlan, Chairman of the Board, Legacy Trust Family Wealth Offices

Invest: spoke with Rodney McLauchlan, chairman of the board of Legacy Trust Family Wealth Offices, about the importance of the fiduciary designation, what it means to serve families, and how it builds the communities it serves through philanthropy.

What were some major milestones for Legacy Trust in Jacksonville over the last year?

We really benefited from the great economy, not only in Florida but also in Jacksonville. You had a lot of people from out of the state coming here. When they settle here, they obviously will need their basic services, ranging from medical services to accountants and financial advisers. And we’re a unique firm. There are few independent trust companies, which is one of our advantages. We’re a Chartered Trust Company regulated by the state of Florida. 

What is the importance of the designation as a fiduciary company?

The word fiduciary is used liberally by a lot of people. But we have a formal charter, a producer charter, and we get audited by the state to make sure that all of our actions are always in the best interest of our clients. They come every year and usually spend three to four weeks going through all our decisions, all our clients’ accounts, and all the minutes of the board and committees to ensure that we are acting in our fiduciary capacity. 

Jacksonville is said to have a unique workforce and be a great place for businesses. What makes Jacksonville a great market for Legacy’s services?

Jacksonville has some strong pockets of wealth. That’s true overall in Florida, but particularly in certain sections of western Jacksonville and along the beaches. And that’s reflected in the real estate market. The average prices of residences are (pretty) high in certain ZIP codes. Most of our business is done in Jacksonville, although we do business out of state as well. But I would say about 85 to 90% of our business is local. The Jacksonville market is large and growing. 

What is the history of Legacy Trust Family Wealth Management, and what core values guide its operations?

Legacy is 22 years old. It was founded in 2002. A group of us, my wife, myself, and some other partners, started Legacy. The rationale was that we felt there was a lack of transparency and conflicts in the financial services industry. We saw an opportunity to do something different, so we started Legacy. My wife and I are prior bankers. We had accounts with big banks and felt there was a lack of customized family office services for people of high net worth. We saw the need in our family and created a solution for us that we wanted to share with our community. 

In what ways does Legacy Trust differentiate itself from other wealth management firms?

It starts with our core values and our culture. In the service industry, you can copy services, but you can’t copy culture. We have a serving culture with a big focus on integrity, transparency, and doing what’s right. This is indoctrinated in our staff. Our team always does what’s in the best interests of our clients, and that’s how we have built our reputation over the years. We’ve been here for 22 years and we’re proud of the reputation that we have built in this market. 

What are some of the services that Legacy Trust offers to high-net-worth families, and how do these services address their unique financial needs?

We offer traditional services, such as wealth management and financial planning. Being a trust company, we also offer corporate trust services. From an estate planning standpoint, many families need or want a corporate trustee, so we can offer both wealth management and corporate trust services. We also provide a plethora of family office services. About 40% of our client base spans three generations. Our team is comprised of more women than men, so we are also better able to focus on women’s concerns. We have educational programs for second and third-generation clients, estate planning services, and we advise on insurance policies. We avoid conflicts of interest by only getting paid through wealth management services; we do not charge for the family office services. 

What measures ensure the privacy and security of client’s financial information, particularly in the face of increasing cybersecurity threats?

Risk management is something we take seriously, especially reputational risk. Regarding cybersecurity, we don’t keep any money in-house; it’s all with a third-party custodian. All account information is with a major custodian, and they indemnify us in case of any problems. We also have a third party that reports portfolio performance to our clients directly from the custodian. We invest in outside firms to educate our employees on cybersecurity. We have a direct line with the FBI office in Jacksonville, which offers free cybersecurity education to companies. This not only helps us manage risk but also impacts our insurance costs positively.

How does Legacy Trust incorporate sustainable and socially responsible investing (SRI) into its portfolio management?

One of the beauties of our approach is we can fully customize portfolios for each client. The younger generation as a general rule gives more importance to this topic, so we design investment portfolios to fit their social and risk parameters. 

What role does technology play in the services provided by Legacy Trust, and how has it transformed operations?

Technology is a big part of our business. It is our biggest investment after people. It transforms how we capture, disseminate, and protect information. Being an open architecture company allows us to access the best technology providers out there, unlike big firms with in-house technology that is harder to adapt. 

What philanthropic initiatives or community involvement does Legacy Trust participate in or support?

We support multiple nonprofit enterprises and encourage all our employees to participate in them. Our involvement includes K9s for Warriors, Gabriel House of Care, Boys & Girls Club of Northeast Florida, and LifeWork Leadership, among others. Kristin and I are personally involved in areas of interest to us, such as education and issues related to exploited children and battered women. We support local businesses and have a charitable organization present to our staff to raise awareness each month. 

What are the top priorities and goals for Legacy Trust Family Wealth Offices over the next three to five years?

Our top priorities include attracting good people who fit our unique culture, continuing to invest in technology, and providing clients with more investment choices uncorrelated to public markets. Finding and developing the right people internally is crucial for our growth, as is leveraging the strong market in Jacksonville.