Estate Management & Trust Services
One of the most responsible things you can do for your family is plan for the transfer of your estate.
By prioritizing long-term financial objectives and developing a strategy for passing wealth to your heirs and beneficiaries, you can avoid the confusion and significant tax consequences that occur without proper planning.
Even if you have drafted a will, you should consider establishing a trust as the foundation of your estate plan. If you're a business owner, it is even more critical for you to establish clear succession plans and methods for funding those plans.
- Summary
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Trust Services
Our trust advisors have the experience and expertise to provide the guidance you need in making these significant decisions.
Because establishing a trust is a highly personal process, we will first work with you to determine what your objectives are. Then we'll bring together the most respected money managers and accounting professionals in the state to develop the proper plan for you.
Our trust advisors will be here for you every step of the way, ensuring your distinct needs are met. To learn more about any of these trust services simply request an appointment, call us at (864) 942-1569, or e-mail us at trustservices@ecountybank.com.
- Trust FAQs
Most Frequently Asked Questions about Trusts
Q. Do I have to have a trust to use your investment services?
A. Many of our customers choose trust arrangements because of the unique advantages they offer. No, you're not required to create a trust. If you prefer, you can put our professionals to work on a less formal basis. All it takes is a simple letter of instructions, designating us to act as your investment agent.
Q. What are the advantages of a trust?
A. With a trust you can not only draw on our broad investment capabilities, but also arrange to have us perform any number of special services, now or in the future. These personalized services could range from making payments of estimated taxes while you're traveling abroad to providing full personal financial management in the event you suffer an incapacitating illness.
You can also name one or more beneficiaries to receive the assets of your trust at your death. These distributions avoid probate. Or, you can have your trust continue beyond your lifetime, serving as a source of continuing income and support for your spouse, a child or others whom you designate.
Q. Is it difficult to set up a trust?
A. Not at all. To put a Countybank trust advisor to work as your trustee, you take two simple steps. You bring us the money and/or securities you wish to place in trust, and you give us your written instructions in the form of a trust agreement. The agreement, drawn up by your attorney, is signed by you (as creator of the trust) and by Countybank (as trustee). That's all there is to it.
Q. If I create a trust, can I maintain control of it?
A. Certainly. Our trust customers control their trusts in three ways:
1. The trust agreement specifies that they may make withdrawals (or additions) at any time.
2. They reserve the right to cancel the trust.
3. They reserve the right to give us new or different instructions by amending the trust agreement.
Q. Are trust services expensive?
A. No. Our fees are competitive with those charged by investment advisory firms (for services that may not include custodianship of securities, record keeping and other conveniences) or by mutual funds.
Q. How big does a trust fund have to be?
A. If you think of millions of dollars when you hear the word "trust," you're the victim of a widespread misconception. Today's trust institutions have developed ways to handle even relatively small trusts efficiently. In any case, we don't think in terms of fixed minimums. Instead we ask ourselves, "Is a trust the best way to meet this person's financial management needs?" To find out whether a trust would be right for you, just contact our trust services division. One of our trust advisors will be happy to sit down with you to determine if a trust is right for you.
Q. How much of a return will I get on my money?
A. That depends on your goals -- current income, long-term growth to offset inflation, or some balance of the two --and on ever-changing investment conditions.
Historically, diversified portfolios of good quality stocks have produced a total annual return (dividends plus growth in principal value) averaging around 10%. Bonds have produced somewhat lower returns overall, but they offer a higher level of current income than stocks.
As your trustee, our goal is to provide reasonably consistent returns over the years. We emphasize careful asset allocation, the selection of quality investments and constant vigilance.
Q. Are trust funds insured by the FDIC?
A. Primarily, trust funds are invested in stocks, bonds or other income-producing assets. These trust investments are not bank deposits. Securities and other assets administered by a bank as trustee are held separate from the bank's own assets, under strict audit controls, and cannot be reached by the bank's creditors
As a result, the need for FDIC insurance is generally limited to uninvested trust cash, such as income awaiting distribution. Under FDIC regulations, uninvested funds held or deposited by the bank as trustee for a revocable trust are insured together with other deposits of the trust's owner up to a total of $100,000.
Q. How can I find out more about trusts?
A. That's easy. Our trust advisors will be glad to assemble further information for you, analyze your investment requirements and answer questions not covered here. Just give us a call.
Q. How can I view my Trust portfolio online?
To learn how you can view your Trust portfolio online, email us at trustservices@ecountybank.com or contact Trust Services at (864) 942-1569.
- Types of Trusts
Personal Trusts
A personal trust can be a very important tool in the estate planning process. There are many different options, and our trust advisors can outline the differences for you. Here are some basic definitions that may be helpful:
A trust created in your will that goes into effect after your death is called a testamentary trust. A trust that takes effect during your lifetime is a living trust.
A living trust can be either revocable, giving you the right to change or cancel the trust provisions, or irrevocable, meaning the trust cannot be amended or revoked.
Just about anyone with assets can benefit from a revocable living trust -- those with large estates and those with more moderate estates. If you have children and/or grandchildren or have title to assets or property, this is one type of trust you might want to consider. A revocable living trust is not a tax-saving vehicle. However, certain types of living trusts can be structured to include provisions to help reduce or eliminate estate taxes.
Irrevocable trusts, on the other hand, may shelter assets from estate taxes. This is a very technical area, and you need to obtain the very best advice. Our trust advisors are uniquely qualified to work with your legal and/or tax advisor(s) to develop the plan that best meets your needs. Since we have full fiduciary powers, we can help you execute that plan by acting as your trustee.
Investment Services
We can help invest your cash by offering funds as well as individually managed investment accounts.
Historically, our investment performance record is outstanding. As custodian of your account, we will place your securities in safekeeping and perform duties established in a written agreement. We then:
- Collect and distribute income
- Transfer and consolidate assets
- Buy and sell securities
- Collect maturing and called bonds
- Maintain complete records and generate quarterly statements
- Provide tax statements for year-end processing
- You benefit from having a safe, professional financial institution maintaining your accounts. You will enjoy the convenience of a consolidated report of all investments and properties. And you'll gain the expertise of a personal account manager who actively manages your portfolio, providing the kind of attention to your investments you know they deserve.
Individual Retirement Accounts
Whether you are considering a career move or looking at retirement, you may need an individual retirement account (IRA) to protect your retirement assets. Our trust advisors can help you sort through the options so you may make decisions that are best for you. We offer funds, as well as individually managed investment accounts, for IRAs of $20,000 or more.
You will benefit from having a personal trust administrator who can answer questions, make investments for you, and establish a tailored portfolio designed to reach your financial goals and maximize your returns. Our cost effective fee is directly related to the overall investment performance.
Estate Planning and Administration
Estate planning is the process of structuring a plan that protects your assets and passes them on to heirs according to your wishes. This is a very personal decision that can affect a family for generations to come, and it requires experienced estate-planning guidance. We're here to help you make decisions that involve establishing a will and/or trust to protect your loved ones, structuring an estate plan to reduce estate taxes or funding charitable gifts for maximum tax benefits.
We can also act as your Personal Representative, carrying out wishes as expressed in your will. This can be an enormous task, involving investment of assets and working closely with the Probate Court. It's nice to know that when that time comes, your estate will be overseen by trust professionals with the experience to handle this often complicated and emotional task.
Employee Benefit Plans
Our employee benefits professionals are trained to provide administrative and investment services for qualified and non-qualified employee benefit plans including:
- Trustee services for employee benefit plans such as 401(k), profit-sharing and money purchase pension plans
- Plan administration services such as allocations and non-discrimination testing
- Income collection, participant distributions and tax reporting
- Asset safekeeping and accounting
Our trust advisors are ready to meet with you to discuss your employee benefit needs. Business is moving faster and faster; there are great advantages to working with a single-source provider whom you can trust.
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