Trust Services & Estate Administration

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Trust Services

A trust is a legal arrangement that allows a third party, or trustee, such as First National Bank, to hold assets on behalf of a beneficiary or beneficiaries. Your trustee is a fiduciary who has a legal duty to act in your best interest.

Trusts can be written in many ways and can specify exactly how and when the assets pass to beneficiaries. Assets in a trust may also be able to pass outside of probate, saving time, court fees, and potentially reducing estate taxes as well. Other benefits of trusts include:

Control of your wealth. You can specify the terms of a trust, controlling when and to whom distributions may be made.
Protection of your legacy. A properly constructed trust can help protect your estate from creditors or from beneficiaries who may not be adept at money management.
Privacy. While Probate is a matter of public record, a Trust allows assets to pass outside of Probate and remains private.

First National Bank Can Serve in Any of the Following Fiduciary Capacities

Executor, Co-Executor of an Estate. A Last Will and Testament is the legal document that dictates what happens to everything you own specifically in your name upon death. The appointed Executor oversees the administration and eventual distribution of assets and personal property as directed by the terms of your Will. Naming First National Bank as an impartial third-party Executor can help alleviate family conflicts that may occur due to decisions that must be made during the estate administration process.

Trustee, Co-Trustee, or Successor Trustee of a Trust. A well-written Trust (Revocable, Irrevocable or Testamentary by Will) can reduce estate taxes and fees by avoiding probate, facilitate distribution of assets to whomever you decide, protect assets from creditors or even family members themselves, and remain private from public record. The Trustee is responsible for carrying out the written terms of the Trust document regarding investment and protection of the Trust's assets, filing taxes on behalf of the Trust, periodic accounting, and making income and principal distributions.

Two common circumstances that affect estate planning are concerns about individuals with special needs and blended families. Special Needs Trusts can be established for beneficiaries who are disabled and are structured in a way that allows them to continue to qualify for public assistance programs, such as Social Security Disability Insurance and Medicaid. Other special planning techniques with Trusts can accommodate blended families, with current and former spouses.

When acting as your fiduciary, First National Bank will be impartial and independent in dealings with all beneficiaries and will ensure your assets are handled with expertise, according to the legal terms of the documents.

Conservator. Financial Management & Trust Services can be appointed by a court to legally act as a conservator. There are many reasons why someone may need a conservator. Those reasons include someone who has become incapacitated, meaning they are no longer able to make decisions on their own.

There are many different types of conservatorships. Under a financial conservatorship, it would be Trust's responsibility to ensure that the conservatee's bills are paid, taxes are filed, and their day-to-day finances are taken care of, such as having enough money for spending. A physical conservatorship means Trust would make decisions for the conservatee regarding matters such as health care and where they live. A general conservatorship, the most comprehensive type of conservatorship, means Trust would be responsible for the conservatee's finances, health, and other significant decisions.

A conservator has a legal obligation to make decisions on behalf of the conservatee that are in their best interest.

Trustee of a Charitable Trust. A charitable trust holds assets and distributes them to charities. When the trust is established, you can specify how its assets will be invested and managed, as well as how it will make donations will be made. There are some tax benefits to setting up a charitable trust; speak to your tax advisor for details. Our Trust team can help you incorporate charitable giving into your estate plan and administer your trust to achieve your charitable giving goals.

Estate & Trust Administration Upon Death

Even the most well-thought-out estate plans can be complicated to execute. If First National Bank is appointed as a Trustee or Executor of an estate, our team will handle all of the decedent's affairs, including:

Gathering, cataloging, valuing, and managing the estate's assets.
Paying debts and expenses.
Arranging for the preparation of final tax returns.
Preparing for any continuation of trust funding.
Making final disbursement to designated beneficiaries.

Our commitment to integrity ensures that we handle each case with the utmost care and respect for your privacy and wishes.

Deciding on a Trust

State laws vary significantly in the area of trusts and should be considered before making any decisions about creating a trust. Consult your attorney for details.

If you are interested in speaking with a wealth advisor about trust services and estate administration, call us at 515-663.3037 or use the Contact Us form.

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