Helping to keep your promises

Transcription

1 Helping to keep your promises Our customized trust services

2 There have been times in your life when you made a promise to yourself. Perhaps you sealed your vow to love and protect with a kiss. You may have held a child in your arms and promised to care for him always. Perhaps you watched a donation improve your community and promised yourself to do more someday. A trust is an option that many people use to help keep promises. You can be confident when hiring a professional trustee like MassMutual Trust Company, fsb (MM Trust) that our experienced staff will help you match your goals to the the most appropriate form of trust, provide fiduciary care, and offer a wide range of services to help you keep those promises.

3 A trust can help you fulfill promises We have all made promises to ourselves of one kind or another. Many times those promises are to care for those we love most. Some promises can be fulfilled now perhaps you have promised to provide financial security for you and your spouse or partner during retirement. Some promises may be to care for generations to come. A trust administered by MM Trust can help you keep those promises. Whether you are thinking about using a trust or if you are struggling to manage an existing trust, MM Trust can help by providing fiduciary care with concierge and customized trust services. Our fiduciary obligation compels us to ensure that we are always acting in your best interest. Once a trust is placed with MM Trust, you will have the peace of mind that you have taken necessary steps to ensure you maintain control over your immediate and long term financial objectives, while keeping your promises to the people you care about most. Fiduciary care Fiduciary care means we have the responsibility to act solely in the best interest of the trust beneficiaries, under circumstances that require the use of reasonable care, skill, prudent judgment and rigorous accountability on a continuing basis. Along with administrative and regulatory responsibilities, our fiduciary care includes concierge services and the prudent investment, preservation and oversight of trust assets. We use our disciplined investment management process and approach to manage your assets while mitigating risk according to the objectives set forth within the trust. Concierge services Our concierge services start with our team of experienced and credentialed professionals. Each trust account is assigned a dedicated Trust Officer and a dedicated Investment Officer who work with your existing financial team during the planning process and throughout the life of the relationship. This team approach provides you with a full array of resources to address your ongoing needs. Our concierge services as part of the administration of trust accounts include, but are not limited to the following: Multi-generational planning and wealth transfer: Through the execution of multiple giving techniques such as generation skipping transfer (GST), annual and lifetime exemption gifts and other tax advantaged techniques, MM Trust can help maximize the legacy available to the coming generations. Bill payment service: MM Trust can pay bills and insurance premiums directly out of your account. If you travel extensively, this service conveniently and reliably manages your monthly bills. If activated now, it may ease a future transition should you become incapacitated someday. 1

4 Estate planning assistance: MM Trust has experienced trust officers and investment officers on staff, many of whom have fiduciary-related professional designations or law degrees, who will work closely with you and your financial professional, your certified public accountant, and your attorney your team of trusted advisors to help develop an estate plan that meets your short and long term objectives. Manage legacy holdings: We have the ability to manage your current legacy holdings and create a divestiture plan over a period of time in order to maximize tax efficiency. Money transfers: Timely direct deposits, wires and ACH transfers can be executed at your convenience to the account of your choice. Cash management services: We can coordinate liquidity events, provide multiple tax efficiencies and facilitate the timing of financial transactions. Account access and reporting: Secure, online access to your account is available at any time. Consolidated reporting with transactions and performance reports is provided on the schedule you choose. The MM Regulatory Trust offers agencies a combination of fiduciary care, a wide array of services, and a closely managed investment platform Treatment to help of beneficiaries you reach your long term goals and provide you with the financial peace of mind you deserve. Trust accounting Trust specific services Some of our services are specific to the fiduciary care we provide to our trust clientele. Each of these services is integral to our approach to administering your trust so you can enjoy your current lifestyle and leave a legacy for those you care for. : Prudent investment management and ongoing monitoring are fundamental services required to ensure that the investment objectives of the trust are met. : Extensive records are maintained for regulatory purposes and to provide the right amount of detail for regular client statements. : These services include the preparation of taxes for trusts, interfacing with other professional advisors on tax-related issues, providing timely, easy-to-read, comprehensive year-end tax information, and continuous monitoring of the trust assets and goals to identify tax reporting issues. : The privacy of all persons involved in the trust is of the utmost importance to us. : Trust beneficiaries are treated impartially and without bias. : Trusts are administered in accordance with the required rules, procedures and regulations. 2

5 Choosing Trustees and the right type of trust When considering a trust, there are a number of important factors to keep in mind. Once you understand the responsibilities of a Trustee, you will need to decide the role that the Trustee or Trustees will play in administering the trust. You have the ability to choose an individual, a professional trustee, or a combination of both for the role. Finally, you ll need to determine the type of trust that meets your goals. The responsibilities of a Trustee A Trustee is required to administer the trust according to the terms set forth in the trust document while keeping the beneficiaries best interests in mind. It is the responsibility of the Trustee to invest trust assets appropriately and prudently. The Trustee also provides accounting (assets, liabilities, receipts, disbursements; records of Trustee actions and routine trust actions; income, estate and gift taxes) and communicates information to the relevant parties. When working with multiple beneficiaries, the Trustee is required to treat each impartially, while considering future beneficiaries. Individual vs. professional Trustees In trust planning, one of the most important decisions to be made is the appointment of a dependable Trustee to ensure that your wealth is managed and distributed according to your wishes. When selecting a Trustee, many people consider a trusted family member or a close friend for the role. However, being a Trustee can put this person in a difficult position with a high level of responsibility. It can also put a strain on family relationships. Another consideration is that family members and friends rarely have a full understanding of the issues, complexities and regulatory requirements that come along with a trust. Many times these individuals must hire outside professionals to help assist them in carrying out the trust s terms. Individual acting as Trustee (a family member or friend) Professional Trustee (MM Trust) Resources Cost Objectivity May only be able to work part-time May have little to no experience or track record May need to separately employ specialists Fees of various other specialists increase overall cost of relationship Might have a conflict of interest due to familial relationships Has full-time, trained, professional and credentialed staff and specialists Staff and specialists who have many years of experience administering trust accounts Offers multiple services at one fee Impartial third party Continuity Service may be interrupted by illness, death or disability Wholly-owned subsidiary of MassMutual Life Insurance Co., a financial institution that has been in business for more than 163 years Investment Knowledge Communication May not be experienced in asset management May hold cash uninvested for periods of time, which may dampen long term performance May communicate infrequently with beneficiaries and may not be able to address complex or emotional issues Substantial experience in managing all assets including unique assets Reinvests cash daily Committed to regularly communicating with beneficiaries, answering questions and discussing all issues with sensitivity and objectivity 3

6 You have other options for choosing a Trustee. You can rely on an established and experienced trust company. A professional Trustee such as MM Trust adds a depth of resources and objectivity that an individual cannot provide. Choosing a Trustee is an important decision. Deciding whether an individual Trustee, a professional Trustee or a combination is right for you should be considered carefully. A variety of professional Trustee roles Another factor in choosing the right Trustee is to consider what role the Trustee would play to administer the trust. Generally, there are four roles in which MM Trust can be used. Sole Trustee: MM Trust assumes all administrative responsibilities, investment management decisions and discretionary distributions in accordance with the terms of the trust document. Co-Trustee: MM Trust takes care of the administrative and investment management responsibilities, with delegations. Discretionary decision-making responsibilities are shared with the other Co-Trustee(s). Successor Trustee: MM Trust steps in when the current Trustee is no longer willing or able to serve as Trustee. Agent for Trustee: MM Trust takes care of the administrative and investment management responsibilities, while all discretionary decision-making responsibilities are handled by the Trustee. Agent for Trustee The role of Agent for Trustee is the one we are most commonly assigned. In this role, a family member or close friend who is Trustee hires MM Trust to act as their Agent. Critical and important responsibilities are delegated to MM Trust so that the Trustee feels confident that fiduciary responsibilities and investment management activities get completed. 4

7 Specific trusts for specific goals Selecting a trust is unique to each person s circumstances. There are different types of trusts to meet a variety of goals. Trusts are designed to address your personal wishes and help you keep the promises that you have made to yourself. Trusts will help you maintain control over how your estate is managed, preserved and distributed, especially if you want access to professional investment management advice and services or seek specific expertise. What do you want to achieve? Have a plan in place should you become incapacitated Provide funds for estate settlement, asset and some creditor protection for beneficiaries Passing on assets to family Leaving a legacy for your family Give to a favorite charity without endangering income to you or your family Provide care for a loved one with special needs Provide some financial security for your children after your lifetime What type of trust will get the results you want? Revocable Living Trust A revocable living trust helps you: Manage some of life s unforeseen circumstances such as a disability. Explain your wishes for your children when you are no longer in the picture Irrevocable Trust An irrevocable trust helps you: Pass on assets to family using gifting advantage while avoiding probate and estate taxes May avoid estate taxes on the appreciation of trust assets Irrevocable Life Insurance Trust: An irrevocable life insurance trust helps you: Maximize life insurance benefits by providing liquid assets to maintain family lifestyle Charitable Remainder Trust: A charitable remainder trust helps you: Support your favorite charity Special Needs Trust: A special needs trust helps you: Have peace of mind knowing that a loved one that may not be able to care for himself will be cared for Trust Under Will (Testamentary Trust). A trust under Will can perform many of the functions of other trusts. Does not take effect until your death What is the benefit of this trust structure? You can retain control of the trust and change or have it revoked during your lifetime Trust assets pass directly to beneficiaries without going through probate, which helps eliminate challenges to estate Avoids probate and maintains privacy An irrevocable trust and its provisions cannot be changed or modified once it is signed Creditor protection for beneficiaries An irrevocable life insurance trust removes the life insurance death benefit from the estate Create a tax-advantaged way to transfer wealth to your loved ones Allows you to enjoy an income stream while avoiding capital gains tax Provides an income tax deduction The trust is structured to continue the person s eligibility for government programs and benefits Provides for additional lifestyle needs A trust at death is created under a Will Changes can be made to the trust throughout your lifetime May be subject to public scrutiny as part of probate 5

8 Let us help you keep your promises You ve seen that placing a trust with MM Trust is an option to help you keep promises you ve made to yourself about protecting those you care for the most. Whether the trust benefits you and your spouse, children or grandchildren, MM Trust gives you fiduciary care, a wide range of services and an experienced staff. Our care, services and staff are dedicated to helping you keep the promises you have made to yourself to provide and care for your loved ones during your lifetime and beyond. Start a discussion with us today. For more information about the services offered by the MassMutual Trust Company, fsb, contact your MassMutual Agent or the MassMutual Trust Company, fsb toll free at or via at info@massmutualtrust.com. The MassMutual Trust Company, FSB is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. The Trust Company does not engage in banking activity (take deposits, make loans, give mortgages, etc.) and does not sell products. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company, fsb is a wholly owned subsidiary of Massachusetts Life Insurance Company. All loans and lines of credit are issued by State Street Bank & Trust. Please note, IRAs and any plans subject to ERISA regulations are not eligible for loans and lines of credit Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. TC C: