The Bank may serve as initial or successor trustee of a variety of trust types which may be created during an individual’s lifetime or following the death of an individual. The trusts may be designed to last for several years or even several generations. They may be revocable or irrevocable. In addition, they may be designed for a broad general purpose or a more limited special purpose. For example, the trust may be structured as a living or grantor trust, charitable trust, minor trust, or supplemental needs trust, just to name a few.
As trustee, the main duties performed by the Bank, include maintaining custody of the trust assets, managing and investing those assets, collecting income, paying bills, making periodic accountings, submitting the necessary fiduciary tax returns, and making disbursements to the trust beneficiaries pursuant to the terms of the trust document. Depending on the special nature of the trust or the needs of the beneficiaries, additional duties may be warranted.
The Bank can assist you or your family by serving as an Executor or Administrator of a decedent’s estate. Usually, the Bank is nominated in a person’s Will, and formally appointed by a judge as part of the probate process. The Bank may also serve in the case of a person dying without a Will or if the person named in the Will to act as Executor or Administrator declines or is unable to serve.
The main duties of administering an estate are to collect and inventory the assets, pay the decedent’s debts and settle claims brought against the estate, file the necessary tax returns for the decedent and the estate, pay any applicable taxes, and distribute the remaining assets to the various beneficiaries according to applicable law. In addition, as Executor or Administrator, the Bank can assist with any post mortem tax planning.
A special type of trust beneficial to landowners for which the Bank may serve as trustee is an Illinois Land Trust. Under such an arrangement, real estate is deeded to the Bank, as trustee, and the Bank becomes the record owner of the property. All active managerial and administrative powers are reserved to the trust beneficiaries.
The Bank will convey, assign, mortgage or pledge the property, or otherwise take action upon the direction of the beneficial owners or persons having the power of direction. This type of trust is often used to protect the privacy of the owners, for estate planning and gifting purposes, to protect a multiple ownership from a partition suit, as well as other purposes.
This type of trust account, for which the Bank may serve as custodian, allows the owner the ability to add to their retirement savings while qualifying for beneficial tax treatment under the IRA rules of the Internal Revenue Code.
The Self-Directed IRA account allows an individual the flexibility to pursue a wide variety of investment opportunities. Traditional investments such as certificates of deposit, money market accounts and publicly traded stock, bonds, and mutual funds may be directed. Under certain instances, other non-traditional investments such as real estate, limited partnership interests, nonpublic stock, or promissory notes may be appropriate, and may be directed as well.
By establishing an agency account, the Bank can assist you in handling your financial affairs in a variety of ways. From simply assisting in the payment of bills, to investing assets, and even as extensive as property management, by direction, you provide the terms and conditions upon which the Bank will act as your agent, and the Bank will do the rest.
Escrow Accounts and 1031 Like-Kind Exchanges
The Bank may serve as an Escrow Agent to hold money, property, or evidence thereof, deposited by two or more parties, to be delivered or paid out according to an Escrow Agreement which specifies the conditions upon which the Bank is to act. This type of account is especially helpful when one party must perform his portion of the transaction prior to the complete performance by others.
One particular type of escrow account, the §1031 Like-Kind Exchange Escrow, is designed to allow for utilization of special capital gain tax deferral treatment under the Internal Revenue Code when an income producing property is sold and replaced with qualifying like-kind property. The Bank, through its Trust Department, is available to serve in a qualified intermediary capacity and work with your professional tax advisor based on our experience in our capacity as an escrow intermediary.
Talk to us about your trust needs… We listen and we know how to help!