About Comerica, Inc. *as of 10/31/15

Transcription

1 Comerica Trust

2 About Comerica, Inc. o Comerica Bank - among the top 25 largest U.S. Banks o Comerica Bank & Trust, N.A. - One of larger trust institutions in the U.S. o Professional Trustee Alliance services provided by Comerica Bank, Dallas, TX. and Comerica Bank & Trust, N. A., Ann Arbor, MI. o 21,000+ personal trust accounts* o $21+ billion personal trust assets* o $107+ billion institutional trust assets* *as of 10/31/15

3 About Comerica, Inc. o Over 100 Years of Fiduciary History o Regional Locations o MI, TX(2), FL, CA(2), DE, MN, NC, CO, NY, TN and AZ o IL, MO, MA, NJ & WA o Experienced Trust Professionals o Experienced Specialty Support Areas o Real Estate and Closely Held Businesses o Estate Settlement, Court Appointed Accounts o Trust Operations, Trust Systems, Trust Tax 3

4 Comerica Trust Fiduciary services including: o Trustee, Co-Trustee or Agent for Trustee o Personal Representative/Executor o Agent for the Fiduciary of Decedent s Estate o Conservator & Guardian of the Estate of a Legally Incapacitated Person o Trustee of Pension Plans and Institutional Trust Accounts 4

5 Duties and Responsibilities of a Trustee o Communication, communication, communication o A duty of interpretation of the trust document, ongoing education as to the nature of the trust and keeping beneficiaries informed o A duty of loyalty to the beneficiaries o A duty of impartiality to the beneficiaries o Reporting & compliance o Investment oversight o Enforcing and defending claims against the trust o Avoidance of conflicts of interests 5

6 Duties and Responsibilities of a Trustee o Trust Administration o Interpreting trust documents o Record keeping & Fiduciary reporting o Distributions and disburse funds o Discretionary actions such as extra ordinary distributions o Investment management and oversight o Investment objectives o Special asset administration o Tax preparation 6

7 Duties and Responsibilities of a Trustee A Trustee will provide the following: o Periodic statements issued to grantors, beneficiaries, financial advisors and money managers o Periodic statements to grantor s accountant and attorney (as required) o Annual trust tax information letters to beneficiaries and accountants o Annual accountings to the attorney general (if required by state law) o Court accountings (as required) o Internet access (as desired) o Performance reporting may be provided by our Alliance Partner or Comerica o ERISA reporting 7

8 Duties and Responsibilities of a Trustee Investment oversight is a critical component of trust administration, and one in which Comerica is actively engaged. As Trustee, we will: o Carry out our responsibilities in accordance with the Prudent Investor Act and applicable state law o Provide fiduciary advice on asset allocation o Approve investment manager selection o Review investment manager performance o Administer non-financial assets, including real estate, oil, gas, and mineral interests o Ensure compliance with all of the terms of the trust document o Work with Co-Trustees 8

9 Duties and Responsibilities of a Trustee A trustee s key responsibilities surrounding distributions include: o Calculating the amount of distributions per trust to beneficiaries o Maintaining accurate records of principal and income transactions o Determining whether to approve discretionary distributions o Maintaining impartiality in the decision making process o Reviewing and approving billings for attorney, accountants and investment advisor o Implementing the intent of the trust maker and terms of the trust to protect beneficiaries and to carry out the terms of the trust protecting the assets and implementing the tax savings strategies of the trust maker 9

10 Duties and Responsibilities of a Trustee A corporate trustee such as Comerica has additional continuing standards to assure compliance and financial integrity. o Reporting according to exacting standards o Continuous self testing o Internal Comerica audits o External accountant audits o Alliance partner due diligence o Office of the Comptroller of Currency, State Regulators and the Federal Reserve Bank regulatory oversight 10

11 Comerica as Personal Representative/Executor In our official capacity of Personal Representative/Executor, we will: o Collect and inventory all of your client s assets (mutual funds, insurance policies, CDs, oil and gas properties, real estate, partnerships, stocks and bonds, personal brokerage accounts, retirement accounts, etc.) o Determine your client s community property allocations (if applicable) o Assume responsibility for the review of investments and safekeeping of your client s estate during probate o Coordinate the investment program and liquidity requirements with our Partner o Calculate, file and pay applicable federal estate inheritance and fiduciary income taxes o Distribute your client s assets to his or her beneficiaries in accordance with their Will, and fund applicable trusts o Work with attorneys and accountants to review and implement post-mortem tax-planning strategies 11

12 Serving Your Institutional Client In addition to a full menu of personal trust services, the alliance allows you to offer trust services to your institutional client as well. Whether a corporation, union, nonprofit or public entity, we are able to serve your client in the following capacities: o o o o Corporate Trustee Custodian Agent ERISA Trustee Other services: o o o o o Master trust plan accounting Pension benefits payment services Consolidated reporting Online access to statements for participants Consulting 12

13 Serving Your Institutional Client We are available to act as Custodian for: o Corporate investment accounts o Hospitals/healthcare organizations o Insurance companies o Foundations/endowments o Taft-Hartley funds o Public funds o Other organizations that require a bank custodian 13

14 Serving Your Institutional Client Investment Oversight o Pre acceptance approval o Quarterly review and reporting o At least annual due diligence o Tracking of purchases and sales o Annual investment reviews o Annual plan in place o Reconcilements of all positions 14

15 Advantages of the Comerica Alliance o Enables the Financial Advisor to gather new assets o Assets remain, when possible, with our Alliance Partner as the sub-custodian o Provides clients with professional trust administration and investment services, seamlessly integrated in an efficient, service-driven trust model o Combines the administrative know-how of Comerica with the investment expertise and breadth of our Alliance Partner o Encourages our Partner Financial Advisor to stay involved after Comerica assumes trusteeship, thereby preserving and enhancing the client relationship and retaining assets o Provides critical component in offering family-focused, multigenerational wealth management, which clients increasingly expect o Provides an open-architecture solution to proprietary offerings 15

16 Prospecting For Trust Clients Client Profile Questions to Ask Response Action Steps* Transferring Existing Trusts Clients with trusts at other trust companies or banks Clients who are current or remainder beneficiaries of trusts at other trust companies or banks Revocable Living Trusts Clients who would like to have assistance managing their assets and administering their trusts or are concerned about disability Irrevocable Trusts Clients who are currently trustee of: An irrevocable trust A surviving spouse s marital or credit shelter trust A family member or friend s trust for a surviving spouse or children Do you have a personal trust account at another trust company or bank? Are you the beneficiary of a personal trust at another trust company or bank? Are you satisfied with the services provided by the current trustee? Do you have a trust officer dedicated to you, or do you dial a call center? Are you satisfied with the range of available investment options and performance? Would you like help with the day-today investment and administrative responsibilities associated with your trust? Did you know Comerica could pay your bills for you? Would you like help administering the trust? (Examples: trust-specific accounting and reporting, filing taxes, investment oversight, compliance with fiduciary laws, dealing with beneficiaries) Are you concerned about personal liability for acting as trustee? Are you interested in hearing about some of the investment choices and services that we offer that other trust companies or banks might not? Would you like to hear about how I can continue to manage your assets in a manner consistent with your financial plan through our Alliance with Comerica? May I introduce you to a member of my virtual team of professionals who specializes in trust administration? Comerica is a professional trustee Comerica may be able to act as trustee for your trust and perform all administrative duties, such as: Bill paying Tax return filing Record maintaining Comerica may be able to act as your agent, taking care of all those issues while protecting you from criticism. You retain complete control You do not pay for the services (the trust does) Ask your client for a copy of the: Will or trust document Trust statement or asset list With client permission, forward will/trust and statement/asset list to your Comerica Trust Specialist or Trust Advisor for review Offer to introduce your client to your Comerica Trust Specialist or Trust Advisor Ask your client for a copy of their: Will or trust document Trust statement or asset list With client permission, forward will/trust and statement/asset list to your Comerica Trust Specialist or Trust Advisor for review Ask your client for a copy of their: Will or trust document Trust statement or asset list With client permission, forward will/trust and statement/asset list to your Comerica Trust Specialist or Trust Advisor for review 16

17 Prospecting For Trust Clients Client Profile Questions to Ask Response Action Steps* Executor or Personal Representative or Agent for Executor or Personal Representative Clients who have a spouse, other family member, or friend who may have recently died and your client has been appointed as the legal representative, executor, or Personal Representative, to settle the decedent s estate Charitable Trusts or Donor- Advised Funds Clients who: Have large concentrations or lowcost basis securities and would consider selling them to diversify but are concerned about capital gains tax Could use more income Could benefit from charitable tax deductions Are charitably inclined Would your client like help and assistance with the administrative responsibilities and duties associated with settling an estate? Did you know Comerica could also provide guidance in both valuing and distributing the estate? How much income do you currently receive from your highly appreciated stock position? Do you have a large position in a stock that you would like to diversify? Did you know that you could possibly earn an income tax deduction from an asset deposited into a charitable remainder trust (living trust only)? Comerica may be able to act as an agent for the executor or personal representative to help settle the estate and will at the direction of your client and perform all of the duties and responsibilities of settling the estate including taxes and distributions Comerica may be able to develop a strategy with a charitable remainder trust that may: Increase your income stream Possibly provide an income tax deduction Increase diversification Avoid or postpone capital gains tax on your appreciated assets Ask your client for a copy of their: Will or trust document Trust statement or asset list With client permission, forward will/trust and statement/asset list to your Comerica Trust Specialist or Trust Advisor for review Call your Comerica Trust Specialist or Trust Advisor for an evaluation of your client s situation 17

18 Prospecting For Trust Clients Client Profile Questions to Ask Response Action Steps* Special Needs Trusts Clients with a Special Needs Trust at another trust company or bank Clients with a special needs child or family member Clients who anticipate a significant settlement related to a personal injury lawsuit Estate Planning Future or Successor Trustees Clients who have named a successor trustee other than Comerica in their will or trust Clients who are in the estate planning process and looking for a potential successor corporate trustee, executor, or personal representative Is your client satisfied with the special needs services provided by the current trustee? Do you and your client know about the special needs services offered by Comerica? Is your client satisfied with the range of available investment options and performance? Who have you named as trustee or successor trustee in your will or trust? Is the named trustee or successor trustee aware of the duties and responsibilities involved in being a trustee? Do you have confidence that the named trustee will follow your written instructions objectively, even in times of emotional turmoil? Are you interested in hearing about some of the investment choices and services that we offer that other trust companies or banks might not offer? Would you like to hear about how I can continue to manage your assets in a manner consistent with your financial plan through our Alliance with Comerica? May I introduce you to a member of my virtual team of professionals who specialize in special needs trust administration? Comerica may be able to act as trustee, co-trustee, or successor trustee for you It doesn t cost anything to name a trust company as future trustee Clients may be able to change this designation at any time Comerica Trust fees start only when we begin to serve A corporate trustee won t become ill, get divorced or remarried, move away, or be distracted by personal concerns or emotions For an existing special needs trust, ask your client for a copy of their: Will or trust document Trust statement or asset list With client permission, forward will/trust and statement/asset list to your Comerica Trust Specialist or Trust Advisor for review For a client doing estate planning with a special needs child, either contact your Comerica Trust Specialist or obtain a copy of our Special Needs Trust brochure to answer any questions your client may have about this very sensitive situation Call your Comerica Trust Specialist or Trust Advisor for an evaluation of your client s situation Ask your client for a copy of their: Will or trust document Trust statement or asset list With client permission, forward will/trust and statement/asset list to your Comerica Trust Specialist or Trust Advisor for review 18

19 Prospecting For Trust Clients Client Profile Questions to Ask Response Action Steps* Legacy Trusts Sometimes referred to as Dynasty trusts Clients with significant wealth Clients concerned about preserving wealth for multiple future generations Asset Protection Trusts Clients with potential personal liability issues Clients looking to protect a portion of their assets against future unknown events Do you want to leave a lasting legacy for your family and/or community? Have you considered wealth strategies that may keep your estate intact for the future generations of your family? Have your children achieved financial success that would allow you to financially skip their generation? Have you considered an asset protection strategy to safeguard your wealth and family? How have you insulated your personal assets from your potential liabilities (both business and personal)? Would you like to learn about strategies that could potentially minimize your taxable estate and maximize growth of assets over multiple generations? Planning techniques may involve establishing an irrevocable trust in certain states that have Asset Protection laws, such as Delaware, as a means to protect future generations Contact your Comerica Trust Specialist or Trust Advisor for an evaluation of your client s situation Contact your Comerica Trust Specialist or Trust Advisor for an evaluation of your client s situation 19

20 Comerica Bank & Trust N.A. - Facts Comerica Incorporated and its subsidiaries provide both Institutional Trust and Personal Trust Services with both a nationally chartered bank, Comerica Bank & Trust, N.A., headquartered in Ann Arbor, MI, and a Texas chartered bank, Comerica Bank, headquartered in Dallas, TX. Collectively, Comerica provides trust and custody services to over 25,000 Personal and Institutional Trust client accounts with assets in excess of $122 billion. Comerica established its Alliance Partner trust business model in 1994, and today has more than 12,000 advisor related accounts with assets in excess of $14 billion. In addition to the 90 trust professionals dedicated specifically to the Alliance business, Comerica's Trust Alliance Group is able to leverage the services and resources of over 250 additional trust, investment, and operational professionals to effectively serve the needs of our Alliance Partners and their clients. How Comerica's Trust Alliance Works Comerica's Trust Alliance Group Resources Speciality Asset Management Irrevocable Life Insurance Trust Administration Nationwide Estate Settlement (7 locations nationally) Special Needs Trust Administration Nationwide Trust Real Estate Services (4 locations nationally) Closely Held Business Management Comerica's Trust Alliance Offices With full fiduciary and custodial services as allowed under Treasury Regulation 9 in all 50 States, Comerica Bank & Trust, N.A. assists Financial Advisors in the transition of new account opportunities, and provides the support of account administration for Financial Advisors and their clients. New York, NY Wilmington, DE Rocky Mount, NC Boca Raton, FL Detroit, MI Minneapolis, MN Memphis, TN Houston, TX Dallas, TX Denver, CO Phoenix, AZ San Diego, CA El Segundo, CA Full Fiduciary And Custodial Services Trustee, Co-Trustee or Agent for Trustee Personal Representative/Executor or Agent for the Fiduciary of Decedent s Estate Trustee of Charitable Trusts, Foundations, CRUT, CRATS & CLATS Conservator & Guardian of the Estate of a Legally Incapacitated Person Delaware Directed Trusts Special Needs Trusts Irrevocable Life Insurance Trusts Blind Trusts Rabbi Trusts Custody Accounts Institutional Trust Accounts, Escrow Accounts & Pension Plans 20

21 Disclosure Comerica Bank & Trust, National Association is a subsidiary of Comerica Incorporated. Comerica Bank & Trust N.A. s strategic alliance partners are neither subsidiaries nor affiliates of Comerica Incorporated. Securities and other non-deposit investment products are not FDIC insured; are not deposits or obligations of, or guaranteed by Comerica or any of its affiliates; and involve risk, including possible loss of principal. Past performance is not indicative of future results. Comerica Bank & Trust, N.A. and its affiliates do not provide tax or legal advice. Please consult with your advisors regarding your particular situation. 21

22 Our Commitment to Our Alliance Partners and Clients o Interpret trust document(s) o Duty of loyalty to the beneficiaries o Enforce and defend claims against the trust o Duty of impartiality to beneficiaries o Duty to keep parties informed o Duty of confidentiality o Duty to make assets productive o Select sub-custodians (as custodian) o Maintain insurance coverage as required o Assure accounting principles are applied o Maintain compliance with principal and income act for the applicable state law o Maintain strict audit and due diligence programs o Maintain asset review for quality, diversity and adherence to investment objectives 22

23 Comerica Bank & Trust N.A. Specialists

24 So Why Comerica? o An experienced professional Alliance focused trustee o Who understand broker and bank cultural variances o Capability to act in all 50 states o Connectivity sub-custody systems are developed o 90 experienced alliance professionals o National coverage with regional offices o Both Personal and Institutional Trust capabilities 24

25 How Do I Get Started? 1. Call your Trust Specialist 2. Secure a copy of the Trust Agreement 3. Secure the latest statement from the current Trustee 4. With client permission, send your copy of the Trust Agreement and statement to your Trust Specialist 5. Don t forget number 1 25

26 Comerica Bank and Trust, N.A. Alliance New Account Acceptance Process Timeline Review Documentation Data & Information Gathering Account Approval FA secures and delivers, Trust Documents and current Annual Statement from current Trustee for review, to the Trust Specialist 3 5 days FA and Trust Specialist secure, Beneficiary Information, copies of 3 years Trust Tax Returns, W-9 Forms and other pertinent account data 7 28 days TEA & Trust Specialist prepare New Account Acceptance Paperwork and secure account acceptance approval 7 28 days Factors That May Cause Delays 1. Incomplete trust Documents 2. Statement is not complete or current Factors That May Cause Delays 1. Beneficiaries uncooperative in returning documentation 2. Inability to contact all of the beneficiaries Factors That May Cause Delays 1. Incomplete paperwork 2. AML or Patriot Act identification issues The account acceptance process leads to the account opening process which requires a completed and approved new account acceptance package. The actual process of establishing accounts, establishing the investment program and physical transfer of the assets from the prior trustee may take an additional four to six weeks. 26