Melbourne-based company Equity Trustees has acquired the business, which dates back to the 1880s, for $5 million. 

More than 25,000 wills and $140 million in trust funds are under management by the estates and trusts business of Sandhurst Trustees.

Bendigo and Adelaide Bank managing director Mike Hirst said the bank reviewed the estates business and found it was time to make a change.

“Without significant investment, our business lacked scale relative to the others in the market,” he said. 

“We are now working with Equity Trustees and the estate department staff to individually assess the impact on their roles, and what opportunities exist for them as part of the equity team or alternative roles within the bank.”

Mr Hirst said Equity Trustees had positions for five or six of the department’s 18 workers. 

The remainder will stay in their current roles for six months, during which Mr Hirst said the bank will find them new positions within the organisation.

He was confident the bank could find all affected staff a place. 

“Our people are our most valuable asset in achieving our vision to be Australia’s most customer-connected bank,” Mr Hirst said. 

The bank has entered into a strategic partnership with Equity Trustees, which includes a five-year referral arrangement.

Equity Trustees will provide estate planning, management and administration support for Bendigo and Adelaide Bank customers. 

“Our two organisations are an excellent fit,” Equity Trustees managing director Mick O’Brien said. 

“Equity Trustees has the same commitment to the values of customer service and individual care as Sandhurst and looks forward to maintaining that high standard in the region.

“We are committed to continuing the strong, enduring relationships with the people of the Bendigo region and their local organisations and community groups.”

Sandhurst Trustees will maintain its custody business and its $5 billion funds management and superannuation businesses.

Equity Trustees has also purchased ANZ Trustees. 

Its acquisition of the Bendigo and Adelaide Bank Estates business will boost its will bank to 55,000.

Equity Trustees has more than $8 billion in funds under management. 

“Since the onset of the GFC, there has been a significant consolidation in the traditional trustee company industry, resulting in fewer traditional trustee companies, driven by significant scale benefits and cost synergies,” Mr Hirst said.

ASIC must approve the agreement for the sale, which Equity Trustees expects will be complete in the first quarter of the new calendar year.