Trust companies have the unique ability to act as a trustee — a person or company that administers financial assets for the benefit of someone else. If you are interested in learning how to form a trust company, we can help you through the process. Saltzman Mugan Dushoff, PLLC is the preeminent financial institutional law firm in the State of Nevada. Contact us online or call (702) 330-3441.
In addition to proof of $1,000,000 in permanent capital, or additional levels as the Commissioner (s) may require, a detailed three-year business plan and a statement of pro forma financial information must accompany each trust company license application.
The business plan must include the company’s mission statement as well as its medium-and long-term goals, the numerical and time-bound benchmarks for determining whether these goals are being met, the business model to be employed, and the operational plan for achieving the medium- and long-term goals. The operational plan must cover the trust company’s strategies and plans for marketing, investing, compliance, information technology, and customer service.
Evidence that the applicant has a Nevada office as well as a resident Trust Officer knowledgeable and experienced in trust company matters. Ideally, a properly staffed trust office should employ trust personnel who have earned the Certified Trust and Financial Advisor or similar credential.
Applying for a Nevada trust license and seeing the process through to its successful conclusion requires attention to detail.
Completion of personal financial and personal history questionnaires by trust company principals (directors, controlling shareholders, officers, or managing members) are required to enable the completion of a background investigation.
The application and documentation must be complete before the state will act, and experience has shown that a good practice is for applicants and, if possible, the proposed resident trust manager to meet with Nevada regulators in person before or shortly after the filing of the application.
The meeting with regulators may include discussions concerning the content of the business and operational plans. The Commissioner must act on a final application within ninety days.
As a practical matter, the time from filing an application to the receipt of final approval from Nevada officials is about four months. The best advice for persons applying for a Nevada trust company license is to be prepared. While the state encourages business formation, licensing is not automatic. The business and operational plans that will be reviewed should be as complete and detailed as possible, and based on sound assumptions and verifiable facts.
Having a qualified consultant and an attorney at your side who are knowledgeable about Nevada law and business practices can be invaluable throughout the process of forming your trust company. Contact Saltzman Mugan Dushoff, PLLC in Las Vegas today.
Matthew D. Saltzman, Esq, is the Managing Shareholder of Saltzman Mugan Dushoff, PLLC who specializes in corporate and administrative law matters for financial institutions. He routinely counsels banks, trust companies, mortgage and installment lenders on Nevada chartering and regulatory compliance matters.