Trust and Financial Management Services
| Portfolio Account Link |
Trust, Financial and Retirement Services
Estate Planning and/or Estate Settlement
Provides for carrying out the exact wishes of each customer as outlined in a will; minimizing estate and income tax burdens; professional asset administration. Heirs are provided for as planned, and they are not burdened with the numerous details of estate administration. Complete accounting and full reporting to beneficiaries provided.
Personal Trusts
Enable a customer to have assets professionally managed and provide for protection of assets from misappropriation. Trustee can act on behalf of a customer to pay bills and file taxes. Can be made part of estate plan. Provides continuity in the event of incapacity of customer.
Charitable Trusts
Provide professional management of assets for the benefit of a charitable entity. May be created by provisions under a person's will for a specific charitable purpose. May also be established by individual charity to be the centralized account of various donor's gifts in order to efficiently invest funds for maximum benefit to the charity.
Guardianships/Power Of Attorneys
Provide professional management / administration of assets for those who are no longer able/care to manage their assets, collect their income and pay their bills. Relieves the burden from one individual having to completely manage another's life.
Investment Management Accounts (Agent)
Provide a thorough analysis of the client’s investment objectives, time horizon and risk tolerance that will determine a customized, personal investment strategy using a mix of equity and fixed income vehicles selected by the Trust Department to meet the client's goals. Clients may choose to have the Trust Department monitor, reassess and adjust the portfolio on a continual basis in line with the specified objectives, or clients may receive recommendations submitted for their approval.
Custodian
Provides custody and safekeeping of assets in one secure place. Trust Department collects dividends and interest payments and provides statements. All record-keeping and administrative activity is handled by the custodian. Customer directs investment decisions and retains control of portfolio.
Retirement Accounts
IRA, Roth IRA, Education IRA, Simple IRA, Profit Sharing and 401(k) Plan, Simplified Employee Pension Plans (SEP) and other retirement vehicles provide retirement planning utilizing Trust Department's professional investment abilities, or may be self-directed by client. Simplified Employee Pension Plans are also provided. (Self-employed, doctors, attorneys, farmers, etc.) Employee Benefit Trusts and Agencies are for those companies seeking pension plans, profit-sharing plans and 401(k) plans for their employees. Employee record keeping, detailed reporting and professional asset management are provided.
Contact our Trust Department at 717-436-2144.
| QUICK COMPARISON OF ACCOUNT SERVICES | |||
| Type of Account Service | Custody | Investment Management Account |
Living Trust |
| Professional, full-time supervision for your invested funds | NO | YES | YES |
| We act on your behalf or submit recommendations for your approval, as you prefer | NO | YES | YES |
| Collection of income, record-keeping and periodic reports | YES | YES | YES |
| Freedom to change your instructions or cancel the service | YES | YES | YES |
| Safekeeping of assets, consolidated tax reporting | YES | YES | YES |
| Lifetime protection, making it possible for us to use principal and income for your benefit, pay bills and attend to other financial matters in the event of your incapacity | NO | NO | YES |
| Continuity of service for the benefit of others following your death, without “probate” delays | NO | NO | YES |
| Reduction in expenses relating to settlement of your estate | NO | NO | YES |
| Opportunity to save estate taxes at death of surviving spouse or other beneficiaries you have named | NO | NO | YES |
| QUICK COMPARISON OF ACCOUNT & TRUST TYPES | ||
| Type of Account | Tax Advantages | Benefits |
| Custody | None | Easy to set up, consolidated record-keeping, retained investment authority |
| Investment Management Account | None | Easy to set up, receive professional investment advice or asset management services |
| Revocable Living Trust | None | Provides professional asset management, continuous financial protection upon incapacity, avoids probate in many states, can continue for other beneficiaries |
| Marital Deduction Trust | Full federal estate tax deferral in most cases | Spouse receives lifetime trust income, may direct ultimate distribution of trust assets. |
| Qualified Terminable Interest Property Trust (QTIP Trust) | Full estate tax deferral | Spouse receives lifetime income, appropriate for “blended families” – children’s interest normally can’t be changed by spouse |
| Bypass Trust | No federal estate tax, possibly for decades | Up to $3.5 million protected in 2009 (subject to unified credit limits set by federal government) with commensurate federal estate tax savings |
| Spendthrift Trust | None | Trust Assets are protected from the beneficiary’s creditors |
| Special Needs Trust | None | May provide for enhanced quality of life while permitting continued government benefits. |
| Generation Skipping Trust | No generation-skipping tax added to estate tax, can possible be protected for generations | Up to $3.5 million protected in 2009 (subject to limits set by federal government) with commensurate federal estate tax savings |
| Charitable Remainder Trust | Income, gift and estate tax deductions | Tax advantages make philanthropic goals easier to achieve |
Please note that all of the above are but brief descriptions of the comprehensive services provided by our Trust Department. Please contact our trust representative at (717) 436-2144 ext. 2121, or stop in at our main office for specifics as to how we may be able to serve your trust, estate and financial services needs.
Investments with The First National Bank of Mifflintown's Trust Department may not be investments with The First National Bank of Mifflintown. Depending on the type of investment, your investment may be subject to fluctuations in market value. It is important to note that investments with The First National Bank of Mifflintown's Trust Department may not be FDIC insured, but can be in such investments like certificates of deposits. Certain investments with the trust department are not a deposit, not guaranteed by the bank, and not insured by any federal government agency and can be subject to a loss of principal.
If you have questions or need additional information on Trust, Financial and Retirement Services, please contact our Trust Department. Please do not send confidential information via e-mail.