Personal Trust Services

Transcription

1 TIAA-CREF Trust Company, FSB Personal Trust Services Transfer assets to your heirs with confidence

2 Many people assume trusts are only for the ultra-wealthy, but that is a misconception. Simply defined, a trust is a legal arrangement for holding and transferring assets on behalf of your beneficiaries or an institution. Before establishing a trust, it is important to determine whether it suits your needs and those of your loved ones. Understand Your Objectives The decision to establish a trust can represent a significant part of an overall financial strategy. Your trust should reflect your values and goals. To support your decision-making process, we ve put together the following list of common circumstances in which to consider establishing a trust: You want to provide for children from a previous marriage or children with special needs. You want to ensure your assets are managed and distributed to beneficiaries according to your wishes. You and/or a family member have accumulated significant assets and do not wish to manage them independently. You have (or anticipate having) complex estate planning requirements, or simply want to minimize estate taxes and probate costs that are often incurred when transferring assets through a will. You are concerned that your will may be challenged in court due to a complex family situation or unreliable beneficiaries. You own real estate in multiple states. You want to provide for professional management of your assets in the event of your incapacity or death. You want to establish structured gifts to charities or other philanthropic activities. What TIAA-CREF can do for you From a legal standpoint, there are a number of options from which to choose when you decide to establish a trust. Acting on your behalf, TIAA-CREF Trust Company can assume various capacities including: Sole (or current) Trustee Co-Trustee working alongside another individual or institution Successor Trustee after another individual or institution transfers ownership and management of your assets and property to us TIAA-CREF Trust Company provides expertise in establishing and managing a range of trust types, each of which we ve summarized in the table on the gatefold.

3 How We Work With You Collaborating for your financial success Our commitment to outstanding client service drives everything we do. From the beginning, we establish a team of senior professionals who will manage all aspects of your financial relationship with us. In addition, members of this team often work in close consultation with other TIAA-CREF wealth management professionals and select outside advisors. Through in-person consultations, telephone conferences and electronic communications, we ensure that you have regular access to your team for questions and expert advice. We also offer a full complement of Web-based tools that allow you to monitor your portfolio and its holdings. Throughout your relationship, your Portfolio Manager continually focuses on maximizing your portfolio s returns based on your needs, risk tolerance and investment objectives. Working together with the Portfolio Manager, Account Administrative Specialists oversee and coordinate the following types of solutions and service options designed to meet your objectives: Full trust administration Consolidated asset reporting Collecting dividends, interest and other income Client consultations Cash management and bill payment Coordination with other advisors and external legal and tax advisors Trust terms you should know Grantor The person who establishes the trust, and who owns the assets (or other property) that will become part of the trust. Beneficiary The person or entity who will receive assets or property according to the terms of the trust. Trustee The person or institution to whom the grantor has transferred legal oversight and responsibility for the assets and property. The trustee has legal authority over these entities and can make decisions on behalf of the grantor regarding their management and administration. Assets/Property The elements used to fund a trust; they can take a variety of forms: securities, bonds, mutual funds, cash, other investment portfolio holdings, insurance policies, real estate, artwork and other highvalue physical objects. Terms The specific rules and regulations established by the grantor (in consultation with the trustee) that govern the management, administration and distribution of assets/property of the trust.

4 Seamless partnership with your trusted advisors Your dedicated team will collaborate with internal and external professionals to provide counsel and strategic advice in several areas, including: Tax and accounting Insurance coverage Estate planning Retirement strategies Charitable gifts Legal issues They will also offer ongoing support to ensure that we develop a comprehensive, holistic understanding of your current and future financial needs, and continue to address each unique aspect of your financial life. Simplify your life with an array of helpful services If you establish a trust with us, we can also assume responsibility for: Preparing your annual trust tax return and all associated documentation Paying beneficiaries Overseeing your real estate interests Distributing principal and income payments Administering funding for complex trusts For those with significant assets and more complex needs, we offer stock option and gift planning analysis, education planning and other specialty services. Whether you elect to establish a trust, you can still take advantage of a number of TIAA-CREF Trust Company s services to help reduce financial complexities and work toward a host of objectives. As always, we look forward to helping manage a number of financial activities and responsibilities on your behalf.

5 Which trusts are most appropriate for your individual situation? Living Trust Highly flexible estate planning tool that allows you to maintain maximum control May shorten estate settlement time frame, avoid probate and protect privacy Consolidate assets in one place for ease of management Can be structured to minimize estate taxes Can free you from the responsibility of asset management Irrevocable Trust Provide ongoing support for you and your loved ones Cannot be modified or terminated May substantially reduce state and federal estate, gift and income taxes Provide asset management for you or your beneficiaries Testamentary Trusts Provide ongoing support for you and your loved ones Revocable until death Amendments are made simply by changing the will Assets are subject to estate taxes Irrevocable Life Insurance Trusts Tax-free benefits go to surviving spouse and/or beneficiaries Provides liquidity for estate taxes or other needs Must be irrevocable to receive tax benefits Grantor must relinquish control Charitable Remainder Trust May reduce capital gains and estate taxes Grantor transfers assets to a trust to benefit chosen charity Grantor receives a current charitable deduction for the computed value of the gift, if done during lifetime Trust pays out income to designated beneficiary (grantor or others), either for life or a period of years On the death of the last income beneficiary, or at the end of the term, charity receives trust property Charitable Lead Trusts May reduce capital gains and estate taxes Grantor transfers assets to a trust to benefit chosen charity Grantor receives a current charitable deduction for the computed value of the gift, if done during lifetime Trust pays out income to a designated charity for a specific time period At the end of the trust term, specified beneficiaries receive the remaining trust property

6 We encourage you to contact your TIAA-CREF Advisor, Consultant or Trust Company representative to discuss this information and review next steps. If you currently do not have a dedicated TIAA-CREF contact, please call and we will put you in touch with someone who can help. TIAA-CREF Trust Company, FSB, One Metropolitan Square, 211 North Broadway, Suite 1000, St. Louis, MO Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value. The tax information contained in this booklet is not intended to be used and cannot be used by any taxpayer for the purpose of avoiding tax penalties. It was written to support the promotion of TIAA-CREF Trust Company, FSB. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor TIAA-CREF Trust Company, FSB, One Metropolitan Square, 211 North Broadway, St. Louis, MO C2280 A12741 (01/12)