|
The Trust Department at First Bank & Trust Co. is comprised of professional individuals trained to help you manage your investments. We offer a broad range of trust and custody services to individuals just like you. Our team of experts will work together to provide the personal attention and the financial services that you expect. For more information you can contact our Trust professionals by email Hal Pennington in Duncan, or Derrick Whiting in Ardmore.
We offer the following services to our Personal Banking customers:
Custodial Accounts
Management Accounts
IRAs
— Traditional IRA
— Roth IRA
Coverdell Education Savings Accounts
Trust Services
Guardianships
Estates
Escrow Services
— 1031 Like-Kind Exchanges
Custodial Accounts are for individuals who want to invest in different types of investments, such as mutual funds, government securities, stock, or certificates of deposit, but do not necessarily want to take the time to handle the paperwork. A Custodial Account allows you to have complete control over your investment decisions. You can diversify and change your investments as often as you choose to optimize your return. As custodian for the assets of individual investors, we provide various bookkeeping services, including periodic consolidated statements, collection and distribution of income, details of purchases and sales of securities, notification of all transactions, and year-end tax information.
If you do not have the time or expertise to manage your own investments, you can establish a Management Account. We will assist you in the design and implementation of an investment portfolio of individual securities based upon your goals and objectives. When you have a Management Account, we will follow an investment strategy designed according to your investment style, goals, and tolerance for risk. Like a Custodial Account, we provide various bookkeeping services, including periodic consolidated statements, collection and distribution of income, details of purchases and sales of securities, notification of all transactions, and year-end tax information.
An Individual Retirement Account (IRA) is one of the best ways to build wealth and save for retirement. IRAs are tax-deferred retirement vehicles established by Congress to encourage people to save for retirement so that they will not have to rely on Social Security benefits or employer retirement plans as their sole source of retirement income. The two basic types of IRAs are the Traditional IRA and the newer Roth IRA. For a discussion of SIMPLE IRAs and Simplified Employee Pension plans, please visit Investment Services – Business Banking.
The Traditional IRA is a well-known means for providing people with tax-deferred retirement savings. A Traditional IRA can be established to accept contributions of up to $4,000 in 2005, 2006, and 2007. IRA owners who are at least 50 years old in 2005 can contribute an additional $500 in 2005 and those who are at least 50 years old in 2006 or 2007 can contribute an additional $1,000 per year. Contributions may or may not be tax-deductible in the year they are made, depending on how much you earn and whether you also participate in an employer-sponsored retirement plan. The contribution limit for a Traditional IRA also must be reduced by Roth IRA contributions. An IRA owner must have earnings from employment in order to make an IRA contribution.
Unlike a Traditional IRA, the contributions made to a Roth IRA are always on an after-tax basis and cannot be deducted for tax purposes. However, the growth achieved through investment returns and the subsequent qualified distributions are tax free. A Roth IRA can be established to accept contributions of up to $4,000 in 2005. Roth IRA owners who are at least 50 years old in 2005 can contribute an additional $500 in 2005 and those who are at least 50 years old in 2006 or 2007 can contribute an additional $1,000 per year. The contribution limit to a Roth IRA must be reduced by Traditional IRA contributions. An IRA owner must have earnings from employment in order to make an IRA contribution.
Introduced in 2001, Coverdell Education Savings Accounts (CESAs) are special trusts designed to accumulate funds for a minor to be primarily used for educational expenses. Annual contributions are limited to a total of $2,000 per beneficiary from all contributors. Qualified expenses include elementary, secondary, or post-secondary education expenses at an eligible educational institution. Although contributions to a CESA are not deductible, distributions can be excluded from the income of the beneficiary as long as the amount does not exceed the qualified yearly expenses of the student. Additionally, contributions can be made for the benefit of an unrelated individual, and a designated beneficiary can generally be changed without tax consequences if the original beneficiary and the new beneficiary are within the same family.
For protecting and transferring your assets, a trust can be a valuable and important tool. We can help structure and manage the administration of trusts, including Living Trusts, Testamentary Trusts, Revocable Trusts, and Irrevocable Trusts. Trusts allow ease and flexibility in how you use and disburse your assets while living and after death. A trust can help you control your current and future finances, as well as provide a means to help with goals such as:
-
Financing your children’s education
-
Supporting an elderly relative
-
Making charitable bequests
-
Saving on estate taxes
-
Managing your assets if you are disabled
-
Providing investment management for your family after your death
A trust is a custom legal arrangement you create so we, as trustee, can hold and manage the property you place in the trust. We care for the property strictly for your benefit or the benefit of other beneficiaries.
Court-ordered guardianships protect the estates of those who are unable to handle their own financial responsibilities, typically children or disabled adults. A financial guardian is responsible for managing all assets in a prudent manner. We are an experienced provider of impartial guardianship services, and we can provide the follow services:
-
Payment of bills and ongoing expenses
-
Determining overall cash flow requirements and living expenses
-
Establishing a monthly budget
-
Investing and managing all assets, including real estate
We administer funds to ensure the financial needs of our customers are met until they reach legal age or, in the case of special children and disabled adults, for the rest of their lives.
Estates are comprised of all of the assets an individual possesses at the time of death. We are experienced in winding-up a deceased individual’s finances so that the estate may be settled. By designating us as executor of your will or as agent for the named executor or trustee, we can relieve the appointed executor or trustee from the tedious duties of which they are charged. We are prepared for the safeguarding of your assets, collection of income, investment of funds, and the filling of required reports and tax returns.
We can serve as an independent third-party to hold money or other property in situations where an independent third-party is needed.
A 1031 Like Kind Exchange (named after Section 1031 of the Internal Revenue Code) can be used to defer the gain or loss recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged for similar property. When you and your tax consultant have decided that a 1031 tax deferred like kind exchange is best for you, we will see to it that the transaction proceeds according to your plan. As a Qualified Intermediary, we will prepare the exchange agreement and provide you with forms and reminder letters to simplify the process.
|
