The trust industry is growing at a rapid pace in the United States. Recent developments have fueled growth in the industry. Tension in our nation’s politics, the financial advantages and security that trusts provide, and an increased need to ensure that our estate plans are in order have all contributed to the growth of the trust industry. In New Hampshire, a study commissioned by the state’s Trust Council showed that the trust industry could add as many as 2,100 new jobs to the state’s economy and bring in $3.7 million in new revenue annually.
The trust industry is still largely dominated by smaller firms. In 1992, 94 percent of non-bank trust companies employed fewer than 20 employees. Only five companies were larger than 250 employees. The largest trust company, Continental Auxiliary Company of San Francisco, employed fewer than 100 people and managed more than $90 million in assets.
These trust companies serve a large population of ultra-high-net-worth individuals. Demographic trends favor the growth of the industry, with the number of wealthy Americans steadily increasing. According to the Credit Suisse Global Wealth Report, there will be at least 18 million millionaires in the United States in 2019. This is a booming market for the trust industry.
The trust industry is in dire need of new talent. Young professionals are needed to fill the gaps in the field. Those interested in the trust industry should consider joining SDTA. The organization promotes South Dakota as a trust situs, helps educate professionals, and supports philanthropic efforts in the community.