Advisor Flipbooks

Regardless of the design of your trust, our Personal Trust Services can be the cornerstone of asset administration, with custodial responsibility and all other administrative and reporting duties: • Supervising trust funds in terms of investment policy and manager selection • Maintaining custody of all of your securities, including processing and confirming your purchase or sale of securities, as well as collecting dividends and interest • Overseeing trust distributions, including beneficiary disbursement and bill payment, via check or ACH as directed • Sending quarterly and annual statements of your holdings and transactions, and performance summaries of your trust investments • Preparing and filing annual tax returns and providing a K-1 to trust beneficiaries • Offering the personal services of an experienced professional trust officer and support teams What kind of trust do I need? You, your advisor and attorney have access to SPTC's wealth of solutions to help you determine which kind of trust will serve you best. Examples of common trusts include: • Revocable Living Trust: A trust that cannot be revoked, and takes effect during the life of the trust's creator (or "grantor"). Its purpose is to transfer wealth, protect assets or reduce taxes. • Testamentary Trust: A trust created during the grantor's life, but that takes effect at the grantor's death. It's usually part of a will—for example, to name a trustee for property left to a minor. • Charitable Trusts: Allow a donor to benefit one or more charities while also financially benefittingthemselves and their family. There are two different types of charitable "split-interest" trusts (those that can benefit two classes of beneficiaries)—charitable remainder trusts (CRTs) and charitable lead trusts (CLTs). The trust selected depends on estate planning and wealth preservation priorities, how and when the charity should receive the gift, and even the types of assets donated. With the added potential benefit of estate, gift and/or income tax benefits, charitable trusts are an attractive vehicle to further your financial, estate and charitable goals. • Grantor Retained Annuity Trust (GRAT): An irrevocable trust providing annuity payments back to the grantor with the intent of transferring appreciation to non-charitable beneficiaries at minimal or no gift tax cost. • Intentionally Defective Grantor Trust: Freezes the value of certain assets of an individual for estate tax purposes, but not for income tax purposes. The grantor can also lower their taxable estate by paying income taxes on the trust assets, effectively transferring additional wealth to beneficiaries. • Dynasty Trust: Synonymous with an irrevocable grantor trust. Allows its creator to pass wealth to successive generations of descendants (even unborn generations), potentially in perpetuity. Distributions and operation of the trust are controlled by the grantor's terms. May include charities if there are no living descendants. • Qualified Domestic Trust (QDOT): Typically used when the surviving spouse is a non-U.S. citizen, to preserve the marital deduction. 5

• Cover