An Irrevocable Trust is a trust that cannot be revoked by the person creating it, except with approval of the beneficiary as opposed to a revocable trust in which the trust instrument can be modified or terminated at will. As your trustee we will carry out the terms of your trust instrument impartially in the best interests of all beneficiaries.
A Revocable Trust is a trust that may be altered or terminated during the grantor's lifetime. Since the trust may be altered at any time until the grantor's death, it is considered part of the grantor's estate and is subject to taxation. The property is passed on to the beneficiaries only after the grantor's death, and the revocable trust then becomes irrevocable.
Special Needs Trust
A Special Needs Trust is created to ensure that beneficiaries who are disabled or mentally ill can enjoy the use of property which is intended to be held in trust for their benefit. In addition to personal planning reasons for such a trust (the person may lack the mental capacity to handle their financial affairs) there may be fiscal advantages to the use of a trust. Such trusts may also avoid beneficiaries losing access to essential government benefits. Special Needs Trusts are frequently used to receive an inheritance or personal injury settlement proceeds on behalf of a disabled person or are founded from the proceeds of compensation for criminal injuries, litigation or insurance settlements.
There are many different options for a parent or grandparent to invest money now to secure educational futures. One option is an education trust fund. There are many benefits to establishing an Educational Trust; once the trust transfers ownership from the grantor to the beneficiary, the property is no longer included in the grantor’s taxable estate. With rising college costs, what you do today will have a great impact on your child’s education.
Life Insurance Trust
A Life Insurance Trust is a trust that is set up for the purpose of owning life insurance policies. A properly drafted life insurance trust will allow the insurance proceeds to escape estate taxation at both spouses’ deaths.
If you are an individual considering a major gift to a registered charitable organization, The Peoples Bank Asset Management and Trust Services team can work with you to determine the best way to fulfill your philanthropic wishes.
A testamentary trust is established by a will and takes effect upon the death of the trustor. The Peoples Bank Asset Management and Trust Services team then collects the assets and carries out your wishes according to the terms defined in the will.
A funeral trust is utilized by funeral homes to hold funds put aside for prepaid funeral expenses. These trusts are irrevocable and are paid out to the funeral home at the death of the beneficiary.
As corporate trustee we are the financial liason between an entity that issues bonds and the public who invests in that project. We provide for the timely and accurate payment of the principal and interest on the bonds, and perform the tasks necessary to assure compliance with the bond covenants for the benefit of the investor.
Paying / Registrar / Transfer
As paying / registrar / transfer agent we maintain a register of all bondholders, maintain a bondholder history, record all ownership transfers / issue and authenticate new bonds in the case of a transfer or exchange or upon company directive, collect funds from the issuer to make interest and principal payments to bondholders, arrange payment of matured bonds.
With The Peoples Bank Asset Management and Trust Services Division you can expect us to help you successfully mitigate risk for critical transactions. As escrow agent we have the duty to properly account for the escrow funds and ensure that usage of funds is explicitly for the purpose intended.
Fully Automated Transfer Program (FAST)
FAST is a system created by the Depository Trust and Clearing Corporation whereby certificates for registered securities are maintained at the offices of individual registrars and can be transferred to a beneficial owner in a more timely and efficient manner. What makes it FAST and automated is that it does away with paperwork and paper securities almost completely, so that securities transfer agents can electronically provide custody, transfer, deposit and withdrawal services very quickly and efficiently protecting you, the customer.
We help you plan for the orderly handling, disposition and administration of an estate when the owner dies. Your team of financial advisors can help you in coordinating financial, estate and tax planning solutions to help your family, your business, personal and philanthropic goals.
Executor / Administrator
The executor is named or nominated in your will and is appointed by the court to settle the state of the deceased. The bank as a corporate fiduciary routinely carries out the wishes in a will and distributes the assets of the deceased.
Investment Management Agency
Your account officer works with you to fully understand your cash flow needs, your comfort level with risk and your expectations to determine your investment objective. Our portfolio manager will select investments that take advantage of the current market and adhere to the Trust Division’s current policy. We work with you to develop an effective long-term investment strategy while adapting to your changing needs.
An Escrow Agent is a trusted third party, who ensures a safe and efficient method of holding funds or assets while acting for both parties pursuant to instructions.
Safekeeping / Custody Agency
A safekeeping / custody agency provides for the safekeeping of securities, record keeping, administrative services and investment advisory services. We do the work and maintain the records. You make the decisions.
The Traditional IRA allows you to defer taxes on your earnings until they are withdrawn. For 2013, you may contribute 100% of your earned income up to $5,500 annually. If you are over 50 years of age, you are allowed to contribute an additional $1,000 annually ($6,500). Early withdrawals are allowed for certain reasons and may be penalty-free. Withdrawals are allowed for any reason after you turn 59½ and must begin by April 1st following the year you turn 70½. The balance will continue to grow tax-deferred. An Individual Retirement Plan (IRA) is a unique savings plan to help you save for your “golden years”.
IRA funds can be used to purchase stocks and bonds as directed by you.
IRA funds can be invested in a variety of securities. Your investment objective is tailored to fit your circumstances and style of life.
A provision of the IRA law that allows you, after receiving a lump sum payment from your company’s pension or profit-sharing plan because of retirement or other termination of employment to rollover the amount into an IRA investment plan within 60 days. Your capital continues to accumulate tax-deferred until you decide it's time to withdraw the funds.
The Roth IRA is a nondeductible account featuring tax-free withdrawals, after a five year holding period, for certain reasons. Roth contributions are non-deductible and taxed in the year they are earned. For 2013, you may contribute 100% of your income up to $5,500 annually with an adjustment for cost of living. If you are over 50 years of age, you are allowed to contribute an additional $1,000 annually to “catch-up” ($6,500). You may always withdraw principal from your Roth IRA tax-free and IRS penalty free for any reason. There is no minimum required deduction from a Roth IRA.
A SIMPLE IRA plan (Savings Incentive Match Plan for Employees) allows employees and employers to contribute to traditional IRAs set up for employees. It is ideally suited as a start-up retirement savings plan for small employers not currently sponsoring a retirement plan.
Simplified Employment Pension Plan (SEP)
A simplified employee pension plan (SEP) is established by adopting an SEP agreement and having eligible employees establish SEP-IRAs. A SEP plan provides employers with a simplified method to make contributions toward their employees’ retirement and, if self-employed, their own retirement.
401(k) Investment Management
A 401(k) is an employer sponsored plan to help you invest pre-tax funds in a range of investments. Taxes are not paid on capital gains, interest or dividends until funds are withdrawn. If your employer has a matching contribution, this is a great reason to take advantage of this retirement planning vehicle.
Minor / Incompetent / Disabled Veteran
As guardian the bank is responsible for protecting and preserving the ward’s estate. We provide competent management of estate and income. In the discharge of our duty as guardian we shall exercise intelligence, prudence, diligence, and avoid any self-interest. All administration of the account is done in accordance with the court requirements and is reported to the court as instructed.
If someone can't make important decisions for themselves, a judge may appoint a conservator to make financial decisions for them. All administration of the conservatorship is performed in accordance with the court requirements and is reported to the court as instructed.