7. Executor Of Estates

A trust company acts as an executor of estates. This trust is nearly the same as that already mentioned. The chief difference is, the company is appointed by the executor himself, and the mode of administering his estate is regulated to some extent by the will under which it acts.

8. Guardian For Wards

Another trust is that of acting guardian for wards. A conclusive reason for appointing a trust company in many cases is its responsibility. Too often have guardians abused their trusts and wrecked the fortunes of their wards on the rocks of some speculative venture. Though laws in every state probably prescribe how the wealth of a ward shall be invested, again and in have guardians disregarded their plain duty. In the light of this experience, trust companies are called more and more to act in the capacity of guardian

9. Special Trustee

Another trust often performed by a trust company is that of a trustee in a narrower sense. An executor bequeaths $100,000 to John Smith, which is to be kept by a trustee who is to pay over the income annually or at other times to the beneficiary. Trust companies often serve as trustees in this capacity. Again, a company is to be reorganized, and during the processs of reorganization its stocks and bonds are to be surrendered preparatory to issuing new ones. A trust company is designated as the trustee to keep the securities during this intermediate stage of reorganization. Again, a company issues notes or other obligations on the deposit of other securities as collaterals. The latter are kept for the benefit of those who are to take the new securities issued on the pledge of them.

10. Reorganizers

Trust companies not infrequently act as reorganizers of property that is in bankruptcy or in need of restoration to soundness and renewed activity. Of late years in many railroad reorganizations trust companies have been effective participants.

11. Dealers In Securities

Lastly, it may be mentioned that trust companies also sell securities and make advances on them, and in this respect are like finance companies. They may buy the entire issue of securities of a company or municipality, and sell them at a considerable advance, thus gaining a handsome profit, or they may sell them for a commission, like an ordinary broker.

12. Mode Of Executing Trusts

Trust companies in executing trusts do not greatly differ in modes of performance from individual executors. In other words, while a trust company is invested with peculiar powers or privileges to do business, it is not invested with any peculiar ways or methods of doing it. When it acts as an executor, administrator, or guardian, it acts like an individual who is performing a similar duty; when it is administering a trust in the narrower sense, it acts like an individual trustee, who has been intrusted with the same confidence.