What You Need to Know
- The seamless transfer of wealth to the next generation is a core element of financial planning for clients.
- The new Envestnet Trust Services Exchange platform will make it easier for RIAs and BDs to do that.
- The announcement comes only two days after Envestnet announced it’s building a new “personal financial ecosystem.”
Envestnet has partnered with Trucendent, a firm with a platform that facilitates wealth transfers, to provide a new solution for helping RIAs and broker-dealers to “seamlessly utilize trust accounts to facilitate the efficient transfer of wealth from generation to generation,” Envestnet said Wednesday.
The new Envestnet Trust Services Exchange platform will be fully integrated with Envestnet | MoneyGuide, Envestnet | Tamarac and other offerings in the Envestnet ecosystem, it said. “This will enable advisors to integrate this new capability into the platforms, processes, and patterns that drive their practice today,” Envestnet said.
The Envestnet Trust Services Exchange has launched and “several advisory firms are currently participating in the pilot offering,” an Envestnet spokesperson said. “The platform will be made more broadly available to advisors in early Q2 2021 and we encourage interested advisory firms to contact the Envestnet Trust Services Exchange now to learn more,” she said.
Being able to seamlessly transfer wealth to the next generation is a “core element of financial planning for clients and their families,” Bill Crager, CEO and co-founder of Envestnet, said in a statement.
“Advisors told us they wanted to be able to help clients navigate estate planning by using trust accounts that align with each client’s financial planning approach — and we listened,” according to Crager.
“The launch of our trust exchange is the latest milestone in the ongoing growth of our ecosystem, broadening the spectrum of tools and data-driven intelligence advisors need to empower an intelligent, connected financial life for their clients,” Crager said.
The announcement came only two days after Envestnet announced it was building a new “personal financial ecosystem” that aims to educate consumers and help them better connect with financial professionals — while also improving the user experience and data-sharing capacity of both advisors and consumers.
That ecosystem includes new Envestnet tools, which should be available for advisors over the next few months and consumers by year-end, as well as a planned consumer app by year-end, Crager told ThinkAdvisor on Friday.