Frequently Asked Questions

Who is The Trust Company of Knoxville?

The Trust Company of Knoxville is a Tennessee trust and investment management corporation chartered and regulated by the Tennessee Department of Financial Institutions Banking Division. We are governed and regulated by the same statutes and regulations that apply to large regional bank holding companies. Founded in 1987, our company has three offices in Knoxville, Johnson City, and Chattanooga, Tennessee, and is locally owned and operated.

Our Board is committed to providing personal trust and investment services within a strong business organization. It is our privilege and our pleasure to provide financial solutions to the East Tennessee community by offering services in the areas of Investment Management, Personal Trust, 401k and Retirement Plans, IRAs, Financial Planning, and Estate & Generational Planning.

How do I know that my assets are safe?

The State of Tennessee, in granting the charter to the Trust Company of Knoxville, made the initial determination that TCK is a sound organization adequately staffed and capitalized to perform trust services. Additionally, we are subject to on-site examinations by bank examiners as well as our external audit firm, Pugh & Company.

This a critical time to take the right actions as advocates for our clients; strength and stability are more important than ever. The Trust Company continues to enjoy a strong financial position. The assets on our balance sheet are all liquid assets, cash, and cash equivalents. We employ no financial leverage in our business and we have no third party debt. Nor do we have direct exposure to sub prime debt, derivatives, credit default swaps, or other securitized products.

What is a Trust?

A trust is a three-party agreement in which the owner of property or other assets (called the donor, grantor, or settlor) transfers the ownership to someone else (the trustee) for the benefit of one or more third parties (the beneficiaries). As a financial tool, a trust provides for professional asset management in accordance with the needs and objectives of the trust beneficiaries. There are numerous trust vehicles available.

How does Trust Company of Knoxville differ from stockbrokers, financial planners and bank trust departments?

The primary difference is our unique corporate status as a locally owned and controlled independent trust company. We are free from the influences of an owner that may have products to sell and/or might be insensitive to the needs of our customers. This allows us to make our investment decisions solely for the benefit of our customers and trust beneficiaries.

Another difference is our fee arrangements. Trust Company of Knoxville avoids all conflicts of interests when charging fees and we fully disclose all fees in a simple and understandable manner. Additionally, we are unique in pricing our accounts by relationships rather than individual accounts. This encourages needed trust accounts for family members regardless of size.

Although Trust Company of Knoxville is permitted to receive compensation from certain mutual funds (12b-1 and other administrative fees), we have elected not to in order to enhance the investment return for our client accounts. We want to be free of any self interest when making recommendations. Any compensation that we receive from mutual funds is passed on to our customers.

What does it mean when we say that we are an "Independent" trust company?

The selection of a trustee is a critical decision to make in the financial and estate planning process, yet the decision is made frequently out of convenience or tradition. Often overlooked is the professional competence of a trustee to represent the stated interests of a trust and to exercise all of the required fiduciary duties that must be performed economically and without bias. In the past, national and regional bank-holding companies and family or friends have managed trusts. But the emergence of independent trust companies has challenged the traditional sources of trust administration and investment services for the following reasons:

An independent trust company

• has the autonomy and ability to exercise decisions and manage a trust in light of the governing document for all beneficiaries without the conflict of corporate interests often associated with mega-banks. This is the essence of what a corporate, independent trustee is all about.
• is focused on a single business and is staffed with experienced professionals who are dedicated to building and sustaining a close, personal relationship with their clients, their family members, and their professional advisors. Independent trust companies believe in partnership.
• is a regulated entity, and it must operate according to statutes that govern capital requirements and actions that fulfill the interests of a trust. Professional trustees are trained and experienced in performing the duties of a fiduciary. Often a family member or friend does not meet these requirements and is ill-prepared to perform the duties of an unbiased trustee.
• exercises the wishes and direction of a grantor to work closely with that grantor’s attorney, accountant, or other appointed professional to help prepare a trust document that is absolutely aligned with the grantor’s intentions and financial situation.
• will avoid “cookie-cutter” services and offer flexibility with a high degree of customization of administrative services to meet a client's special needs. They take their responsibilities seriously, and routinely exercise their authority on behalf of their clients’ best interests.

 

Will you work with my accountant in tax preparation?

The Trust Company of Knoxville can prepare a variety of reports that will make your accountant’s tax preparation work easier. We track the cost basis of your assets as well as income and expenses. We will provide these reports to you or your accountant.