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Spectrem's Personal Trust Update

Total bank personal trust assets grew $65 billion in 2013.

| BY Kent McDill


Spectrem’s 2014 Personal Trust Update, an annual examination of the trust industry in the United States, shows growth as might be expected in a growing and more confidence economy.

According to Spectrem’s study, which comes from FDIC surveys of member trust institutions, trust assets in 2013 increased 7 percent and continued the decade-long ebb and flow in which trust assets have essentially remained flat from 2003 on.

The number of accounts continue to decline over all areas, although assets bounce along with the overall market performances.

All institutions that have any fiduciary or related assets file information to the FDIC each December. These institutions primarily consist of nationally-charted and FDIC-insured state-chartered trust institutions. A small number of institutions that are purely state-chartered and are not FDIC-insured are not included in the Spectrem report. Those exclusions also eliminate certain independent and special-purpose trust companies from analysis.

The 2014 Personal Trust Update comes amid a growing number of wealthy households in the United States, maintaining a five-year trend. According to Spectrem’s Affluent Market Insight report, there are now more than 9.5 million households with $1 million or more of net worth. Nearly 1.25 million investors have more than $5 million of net worth. Only 132,000 households have more than $25 million of net worth.

The trust numbers show that at year-end 2013, total bank personal trust assets increased $65 billion and ended the year at an estimated $948 billion. That remains below the top number from 2007 of 1,149.50 billion, but the 2013 total is the highest since the recession. It is still lower than it was in 2003 when the trust amounts began to grow dramatically on the way to the recession.

The number of total personal trust accounts within U.S. banking institutions continued their six-year downward trend and settled at 614,000.

The number of Managed Personal Trust accounts continued its six-year downward trend to another all-time low since tracking began in 1996. It is now at 540,276 from a high in 1999 of 860,198.

The number of Non-Managed Personal Trust accounts decreased slightly and have been stagnant over the past five years. There are now 74,506 non-managed personal trust accounts, more than 50,000 less than the 2002 total of 127,558.



About the Author


Kent McDill

kmcdill@spectrem.com

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.