WHAT IS A TRUST?
A Trust is defined as an arrangement in which a person transfers legal title of property to another person who manages the property for one or more people.
Characteristics of a Trust
- Legally enforceable contract
- Trustmaker of Grantor/Settlor
- Trust Manager or Trustee
- Trust Property or Corpus
- Beneficiaries
Benefits
- You maintain control, even in the future
- Confidentiality
- Difficult to contest
- Quick distribution, or keep assets in trust
- Change/cancel at any time
- Trust contains your instructions
- Minimize expenses
Duties of a Trustee
- Securing trust property
- Keeping assets invested
- Following Trust Agreement
- Filing tax returns, paying bills & taxes
- Distributing income to beneficiaries
- Maintaining records
What to Look for In a Trustee
- Permanence and stability
- Experience in trust management
- Investment expertise
- Objectivity & Impartiality
- Regulatory review and audit
- Plan for successor
As a Trust client of Bank of Kansas City, we’ll work with you to create the right Trust for you and your beneficiaries
Revocable Trust
Also known as a “living” trust, this is an agreement that you create during your lifetime. You direct how your assets are to be administered during your lifetime and for the benefit of others after your death. You may change this agreement anytime.
- Often considered by people at a stage in their life when they want professional advice in managing assets in the event of their incapacity or extended illness.
- Sensitive and diligent attention in honoring your confidences and protecting your property.
- Fully support advance directives including living wills, and health care and durable powers of attorney.
- Can avoid probate and ensure the privacy of all financial matters, as well as creating tax-planning opportunities with the potential for saving income and/or transfer taxes.
- Maintain your decision making autonomy and respect your family and social connections.
Irrevocable Trust
This is an agreement that you create which may not be changed after its creation. You can use a trust like this for specific tax reasons and to provide benefits for others.
- Often become irrevocable upon the death of the creator of a revocable trust.
- Funds are utilized to care for your family members under guidelines set forth in the document governing the trust.
- Discretion is given to the trustee to make these payments, and an experienced trustee is a requisite to fully understanding your family’s needs.
- Provides you with continuity, personal attention, and consistent administration with knowledgeable officers who understand the integrity and professional relationships needed.
- Discretion to use funds is at the heart of the fiduciary relationship, and each document is crafted by your attorney to meet the requirements your unique family will experience.
- We are prepared to do the job right: spending time to get to know your family’s needs and exercising discretion in a neutral unbiased fashion and standing ground when necessary in complex familial and sophisticated business situations.
Charitable Trust
This is a trust you create to support a favorite charity or charities. It can provide you tax benefits, while meeting your philanthropic goals.
- Our extensive tax and legal knowledge makes us the advisor or service provider of choice for a broad spectrum of charitable trusts.
- A corporate fiduciary is the logical choice to serve as Trustee of a perpetual charitable trust.
- Our knowledge and experience allow us to prudently and effectively serve as Trustee of various split interest charitable trusts where the current or remainder beneficiaries are charities.
- We provide valuable investment advice as well as tax and regulatory compliance for private foundations.
Special Needs Trusts
- In addition to traditional arrangements, Bank of Kansas City serves in specialized areas including complex tax-driven trusts, court appointments, and special needs trusts. We are familiar with the latest iterations of transfer and income tax planning, can provide necessary court-approved accountings, and can serve as trustee in special needs trusts.
- The legal training of our staff enables us to participate in sophisticated planning strategies such as discounted sales of partnership interests to grantor (defective) trusts, grantor retained annuity trusts (GRATs) and other tax driven trusts.
- We have extensive experience in serving as Conservator for minor and elderly persons under court supervision as well as serving as the provider of choice for VA administration.
- Our sensitive and knowledgeable staff has extensive experience in serving as Trustee for special needs and settlement type trusts for disabled individuals.
- We serve as Personal Representative for probate administration in estates.
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