US Bank Launches Delaware Trust Company
New York-listed First Republic Bank has launched a new trust company in Delaware, naming John McCabe as managing director and senior trust officer.
Prior to joining First Republic, McCabe worked at Goldman Sachs
Company and Neuberger Berman Trust Company. He is also a member of the
Philadelphia Estate Planning Council's board of directors.
The firm said the new entity will allow clients to "realize
advantages of Delaware trusts," as they can offer significant income and
estate tax benefits, in addition to greater flexibility in establishing
multi-generational trusts, including dynasty trusts.
A number of firms have made hires to trust businesses in the
first part of this year, as developments in the US tax code have driven
demand for these services.
At the start of the year, Dan Lindley, president of The
Trust Company in Delaware and chief fiduciary officer of its private
client business in Guernsey and Cayman Islands, anticipated that 2012
would be highly "tax-driven" for private clients.
His predictions were due to the 2010 Tax Relief Act, which he
had ushered in “unprecedented” opportunities to make lifetime gifts –
but only within a two-year window set to expire at the end of this year.
Earlier in 2012 Key Private Bank, another regional bank and part
New York-listed KeyCorp, established a Delaware national trust company
to work with its wealth clients and prospects on asset protection and
Meanwhile, Cambridge Bancorp named Susan Martore-Baker as
of its subsidiary Cambridge Trust Company of New Hampshire, while
Neuberger Berman hired Diane Lederman as president and chief executive
of Neuberger Trust Company earlier this month.
First Republic already has trusts in California, Connecticut,
Massachusetts, Nevada, New York and Oregon, with over $4.6 billion in
assets, as of 31 December 2011.
First Republic Trust Company of Delaware is part of First
Private Wealth Management and can serve as trustee, successor trustee,
or co-trustee on various personal trusts, including marital, irrevocable
and charitable trusts. The bank said it also serves as executor or
co-executor for estate settlements.