SIC 6091 Nondeposit Trust Facilities

SIC 6091

Establishments in this classification are primarily trust companies engaged in fiduciary business, but not regularly engaged in deposit banking. Some of these establishments occasionally hold limited amounts of special types of deposits, and their uninvested trust funds are usually classified as deposits. These nondeposit trust facilities may have either National or State charters. This industry does not include establishments operating under trust company charters, which limit fiduciary business to that incidental to real estate title or mortgage loan activities, which are classified in SIC 6361: Title Insurance.

NAICS CODE(S)

523991

Trust, Fiduciary, and Custody Activities

A trust company is primarily involved in establishing trusts, mechanisms under which the company manages assets for the benefit of a third party. In the establishment of these trusts, there are typically three parties. The first is the trustor, who is the party creating the trust and also maybe known as the settlor, grantor, or donor. Second is the beneficiary for whose benefit the trust is established. Finally, the third party is the trustee, who is responsible for the management and preservation of the property of the trust estate.

Trust arrangements became more popular in the 1990s. They are often established to provide for the education of children and provision for old age. Once the trust is created, it is irrevocable, even by the trustor himself, unless there is express provision for revocation or the purposes of the trust have been accomplished. Trusts allow an individual to guard against the dissipation of wealth while still allowing for the necessary use of available funds.

A trust is a fiduciary relationship in which one person or entity is the holder of the legal title to property, subject to the equitable obligation to keep or use the property for the benefit of another. The trust company must use the assets entrusted to it in the best interest of the beneficiary of the trust.

A trust company is a company organized for the purpose of executing such arrangements. The functions of these companies can be divided into two broad categories: individual trusts and corporate trusts. Individual trusts act in several capacities including executor, administrator, trustee, guardian, conservator, custodian, and conservator in lunacy. Corporate trusts act as fiscal agents, registrars of stock, transfer agents, trustees...