A group of veteran trust officers and investors have formed the first independent public trust company in Tennessee since a 2011 overhaul of state trust law positioned Tennessee as one of the most favorable states for trusts.
The company known as Pendleton Square Trust Co., LLC is hoping to play a critical role tap in estimated $16 trillion transfer of wealth from affluent baby boomers to their children over the next three decades by offering an independent trustee role separate from the investment or wealth management offered by banks, brokerage firms or registered investment agents.
Betsy Blunt Brown, a 19-year veteran trust and investment manager who previously helped open offices in Chattanooga and Atlanta for Cumberland Trust, will be based in the firm's Chattanooga office. She was formerly a vice president at JPMorgan Private Bank and director of fixed income origination at SunTrust Robinson Humphrey and is a partner in The JumpFund, an angel fund investing in female-led businesses in Chattanooga.
"We had significant investors from across the Southeast," Brown said. "We will serve as a fiduciary, so we will work as a trustee for a trust or as an executor for an estate and partner in our independent trust role with companies like Merrill Lynch, Morgan Stanley and all of the other registered advisers in town who manage the marketable securities."
Pendleton Square obtained its charter from the Tennessee Department of Financial Institutions in late October and organizers hope to grow the business to provide trust services for high-wealth individuals and foundations across the Southeast and collectively handle more tan $1 billion in trust services.
Robin Satyshur, veteran advisor to high net worth families for more than two decades, is chief executive officer of Pendleton Square Trust & Family Office, which will initially have trust offices in Chattanooga and Nashville, adding a family office in the coming months, and maintaining board presence in other parts of the state including Memphis.
Steve Davis will be chief trust officer and Derek Church chief fiduciary officer.
Pendleton Square will offer trust administration services for personal and charitable trusts, estate administration, along with family education, risk management, governance, succession planning, wealth transfer, mentoring and comprehensive reporting.
"As an independent trust company, we are able to help individuals, families and legal entities navigate financial complexities without conflicts or perceived conflicts of interest that often present themselves when engaged in active investment management," Satyshur said.
Tennessee's trust climate was ranked third best in the U.S. in the Fourth Annual Oshins Dynasty Trust State Rankings published last month. The rankings, compiled by Nevada lawyer Steve Oshins, evaluate states and their trust laws based on asset protection, ability to accomplish trust intent and taxation, among other factors.
"Tennessee trust laws are among the most progressive in the country, and we think there is an opportunity to turn that into a real economic advantage to the state and its citizens," Brown said. "We believe we are in a unique position to establish Tennessee as an industry leader, attracting generational trust administration from other parts of the country."
Tennessee is phasing out its estate tax and doesn't have a personal income tax. Trusts domiciled in Tennessee also don't pay estate taxes, even if the individuals reside in other states.