Key Responsibilities and Required Skills for Director of Trusts

🎯 Role Definition

The Director of Trusts leads the fiduciary and operational management of trust portfolios across revocable, irrevocable, charitable and special needs trusts. This senior leadership role is responsible for policy development, compliance with state and federal fiduciary law, oversight of trust accounting and tax compliance, staff development, process improvement, vendor management, and high‑touch client and advisor relationships. The Director of Trusts ensures consistent, accurate administration of trust assets while mitigating fiduciary risk and driving operational efficiency and growth.

📈 Career Progression

Typical Career Path

Entry Point From:

Senior Trust Officer or Trust Officer
Trust Administrator / Trust Operations Manager
Fiduciary Counsel or Estate Planning Attorney

Advancement To:

Head of Wealth Management / Head of Fiduciary Services
Chief Fiduciary Officer / Chief Trust Officer
Regional Director, Private Banking or Trust Services

Lateral Moves:

Private Banker / Relationship Manager (Wealth)
Estate Planner or Trust Counsel
Trust Operations or Trust Accounting Lead

Core Responsibilities

Primary Functions

Oversee daily administration of a diversified portfolio of trusts (revocable, irrevocable, testamentary, charitable, special needs), ensuring fiduciary duties are met and trust terms are followed accurately and consistently.
Provide senior fiduciary oversight for complex trust matters, including discretionary distributions, beneficiary communications, conflict resolution, and equitable administration across multiple jurisdictions.
Lead trust accounting functions: oversee monthly and quarterly trust accounting cycles, reconciliation of trust ledgers, statement preparation, and timely distribution processing in accordance with trust instruments.
Ensure timely and accurate preparation and filing of fiduciary tax returns (Form 1041 and related state filings), coordinate with tax specialists, and review tax planning opportunities to minimize tax leakage for trusts and estates.
Develop, implement and maintain written trust administration policies, standard operating procedures, and quality controls to ensure regulatory compliance and consistent administration practices.
Manage and mentor a multi‑disciplinary team of trust officers, trust administrators, trust operations specialists and support staff; establish performance metrics, conduct reviews and provide targeted training and career development.
Serve as primary escalation point for complex fiduciary decisions, litigated trust matters and sensitive beneficiary disputes; coordinate with internal legal counsel and outside counsel as necessary.
Build and maintain strong client and professional advisor relationships (attorneys, CPAs, financial advisors) through regular reviews, strategic planning meetings and high‑touch service models to retain and grow trust relationships.
Oversee investment oversight framework for trusts: collaborate with investment teams to ensure trust investments adhere to trust documents, prudent investor standards and client objectives; review and approve investment policies and large transactions.
Ensure robust Know Your Client (KYC), Anti‑Money Laundering (AML) and sanctions/OFAC compliance for trust accounts and new trust openings; coordinate with compliance and AML investigators on elevated issues.
Lead trust onboarding and acceptance decisions for new trust engagements, including due diligence, risk grading, acceptance memos and approval of delegation to operational teams or third‑party administrators.
Implement enterprise risk management and internal controls to identify, mitigate and report fiduciary, operational and compliance risks specific to trust administration.
Drive technology adoption and process automation in trust workflows: evaluate and implement trust administration systems, document management, custody interfaces and digital client reporting tools to improve efficiency and transparency.
Oversee vendor and custodian relationships, including due diligence, contract management, service level monitoring and resolution of third‑party service issues impacting trust administration.
Prepare and deliver executive‑level reporting and KPIs on trust portfolio performance, operational metrics, risk exposures and client satisfaction to senior leadership and the board.
Lead continuous process improvement initiatives, including lean/process mapping, remediation of audit findings, and integration of best practices across regional trust offices.
Manage budget planning and fiscal oversight for trust operations, including staffing models, project budgets and vendor costs to ensure profitability targets and cost controls.
Coordinate succession planning and continuity strategies for high‑net‑worth clients to ensure seamless administration across life events, incapacity and trust terminations.
Oversee distribution planning and execution for beneficiary payments, charitable gifts, and trust terminations, ensuring tax‑efficient strategies and compliance with distribution provisions.
Monitor and ensure compliance with state trust codes, federal regulations, ERISA (where relevant), and industry standards; keep the organization abreast of legislative and regulatory changes impacting trust administration.
Act as subject matter expert for trust policy, training, and industry outreach; represent the firm at trade associations, conferences, and advisor/industry events to promote fiduciary expertise.
Coordinate internal and external audits of trust processes, implement remediation plans for audit exceptions, and ensure remediation timelines and controls are documented and enforced.
Oversee client reporting and communications strategy: ensure clear, accurate trust statements, tax summaries, estate settlement updates and ad‑hoc reporting meet client expectations and regulatory standards.
Lead integration efforts for mergers, acquisitions, or platform migrations involving trust portfolios, ensuring data integrity, client outreach and minimal service disruption.
Drive business development efforts in partnership with relationship managers to identify cross‑sell opportunities, expand fiduciary services, and grow the trust asset base while maintaining risk appetite.
Ensure privacy and data protection for sensitive client information in trust files; enforce policies for secure storage, retention and destruction in line with regulatory and enterprise standards.
Manage complex trust investments, alternative assets and non‑traditional holdings (real estate, privately held businesses) including valuation, liquidity planning and disposition strategies.
Provide coaching and guidance for ethical decision making around conflicts of interest, beneficiary communications and fee disclosures to preserve the integrity of the fiduciary relationship.

Secondary Functions

Support periodic internal data requests and prepare trust operational dashboards and analytical summaries for leadership decision making.
Collaborate with IT and operations to translate trust business requirements into system enhancements and workflow automations.
Participate in enterprise governance committees (risk, compliance, technology) to align trust practices with firmwide standards.
Assist in ad‑hoc investigations related to fraud, discrepancies or high‑risk trust activities and coordinate escalation to legal and compliance teams.
Contribute to the organization’s talent pipeline by participating in recruiting, interviewing and onboarding of trust staff.
Support marketing and thought leadership initiatives by providing content expertise for whitepapers, client seminars and advisor education on trust topics.
Facilitate cross‑functional projects such as fee model reviews, client experience initiatives, and regulatory change programs affecting fiduciary operations.
Maintain and update knowledge base, trust templates, fiduciary checklists and training materials for consistent use across trust teams.
Provide interim management support during regional office transitions or when scaling new trust service offerings.

Required Skills & Competencies

Hard Skills (Technical)

Deep knowledge of trust and estate administration, including administration of revocable and irrevocable trusts, charitable trusts, special needs trusts and testamentary trusts.
Strong fiduciary law and regulatory compliance expertise across state trust codes and federal regulations (including ERISA where applicable).
Advanced trust accounting skills: trust ledger management, reconciliations, custodial accounting, and trust financial reporting.
Experience preparing and reviewing fiduciary tax filings (Form 1041, Schedule K-1, state fiduciary returns) and coordinating with tax advisors.
Proficiency with trust administration and custody platforms (e.g., FIS, SS&C, TrustsCentral, SEI, Black Diamond) and CRM systems used in wealth management.
Robust understanding of KYC/AML processes, sanctions screening (OFAC) and transaction monitoring for trust clients.
Financial literacy for investment oversight: asset allocation, portfolio monitoring, cash management, alternative asset handling and valuation practices.
Vendor and custodian management skills including RFPs, contract negotiation and service level monitoring.
Project management capability: ability to lead system implementations, M&A integrations and process improvement initiatives.
Data analysis and reporting skills: creation of operational KPIs, executive dashboards, and performance metrics using Excel, BI tools or trust reporting platforms.
Knowledge of estate planning documents, probate processes and interaction with estate executors and attorneys.
Experience conducting internal and external audits, implementing remediation plans, and enforcing controls.
Budgeting and P&L oversight experience for trust operations or service lines.

Soft Skills

Strong leadership and team development skills with a demonstrable track record of building high‑performing fiduciary teams.
Excellent client relationship and stakeholder management abilities; skilled at presenting to high‑net‑worth clients and professional advisors.
Superior written and verbal communication skills; comfortable drafting clear trustee decisions, client letters and board reports.
High integrity and sound ethical judgment in fiduciary decision making and conflict resolution.
Excellent attention to detail and organizational skills in managing multiple complex engagements simultaneously.
Strategic thinker with the ability to translate regulatory and market changes into actionable operational plans.
Problem solving and critical thinking skills to navigate complex trust situations and ambiguous legal matters.
Change management and influence skills to drive adoption of new systems and processes across distributed teams.
Strong negotiation skills for beneficiary resolutions, vendor contracts and cross‑functional agreements.
Resilience and adaptability in a fast‑changing regulatory and market environment.

Education & Experience

Educational Background

Minimum Education:

Bachelor’s degree in Finance, Accounting, Business Administration, Law or a related field.

Preferred Education:

Juris Doctor (JD) with emphasis in trusts & estates, or Master’s degree in Taxation, CPA, CFP, or related advanced credential.
Professional certifications such as Certified Trust and Fiduciary Advisor (CTFA), CFP, CPA or related fiduciary credentials are highly desirable.

Relevant Fields of Study:

Finance
Accounting
Law (Trusts & Estates)
Business Administration
Taxation / Estate Planning

Experience Requirements

Typical Experience Range: 8–15+ years of progressively responsible experience in trust administration, private banking, or fiduciary services.

Preferred:

Minimum 5+ years in a senior leadership or management role overseeing trust operations or fiduciary teams.
Proven experience in a bank trust, independent trust company, or wealth management firm administering complex and high‑net‑worth trust relationships.
Demonstrated experience with regulatory compliance programs, trust accounting systems, and large portfolio oversight.
Track record of process improvement, technology implementation and cross‑functional collaboration in trust or wealth environments.