AUSTIN CAPITAL TRUST COMPANY

Transcription

1 AUSTIN CAPITAL TRUST COMPANY Providing for the long-term financial security and safety of assets

2 PROTECTING RESOURCES BY PROVIDING THE RIGHT SERVICES Austin Capital Trust Company s role is to help protect assets for individuals, families, and corporate clients. While there is no way to predict the future, there are steps you can take in order to protect your assets to provide meaningful financial security now, and in the future. Austin Capital works to develop and implement a sound plan to provide the protection you need. By working in concert with other financial professionals to fulfill your wishes, you have the confidence knowing independent experts are working to provide critical fiduciary safeguards. Austin Capital s trust services help ensure the prudent management of assets now and in the future.

3 FAMILY WEALTH PRESERVATION One of the basic components of financial and estate planning is the creation of trusts. A trust is a legal document that enables the trust to own property for the benefit of a third party, and outlines how these assets will be managed upon your death or when you are unable to manage your affairs. After death, the trust will distribute assets to beneficiaries, or hold and invest the assets for a specified number of years. Unlike a will, a trust does not go through probate, a process that can take a great deal of time, may have tax implications, and is a matter of public record. Establishing a trust allows you to provide guidance on how and when the trust assets will be distributed. As a part of your complete financial and estate plan, a trust allows you to enjoy your assets during your lifetime while establishing guidelines on how they will be managed and distributed to your beneficiaries when the time comes. Providing a trust for your loved ones can be a key step to ensure they are properly cared for, and provides peace of mind to you as you plan for the future. Austin Capital understands the relationship you have forged with your advisor. Your advisor s experience is invaluable in developing financial and investment plans; their services include guidance on many trust details, including: The steps involved in establishing a trust Determining the qualifications of the trustee The type of trust to help you meet your objectives Use of experts such as tax professionals or estate planning attorneys to ensure your estate plan meets your objectives and needs Your advisor can assist you in determining which services may be most beneficial to you. 2

4 TRUST SERVICES OFFERED BY AUSTIN CAPITAL Austin Capital Trust Company offers an array of specialized trust services, each with distinct benefits to you: Agent for Trustee Services Austin Capital can be appointed as Agent for the Trustee, assisting a trustee with many of the complex services required in trust administration, while allowing your advisor to retain investment management duties. As Agent for the Trustee, we provide assistance with: Accounting Recordkeeping Tax reporting Other administrative requirements Austin Capital Reporting Services These services handle the specialized accounting and reporting for trust assets. Enhanced Reporting Services include: Principal and income tracking Tax-lot accounting Recordkeeping for marketable and non-marketable securities Administrative Trustee Services These services handle all the fiduciary, accounting, and tax responsibilities of administering a trust. By appointing Austin Capital as corporate trustee your advisor will remain your primary relationship and knowing that the trust administration is being professionally handled by Austin Capital. A Full Spectrum of Trustee Services Offerings that Grow as Your Lifestyle Changes Simpler Needs Reporting Services Agent For Trustee Services Administrative Trustee Services More Complex Needs 3

5 TYPES OF TRUSTS Irrevocable Life Insurance Trusts A common way to minimize estate taxes involves the establishment of an Irrevocable Life Insurance Trust (ILIT). A properly structured and administered ILIT can keep your death benefit of your life insurance policy out of your estate. The full benefits of the life insurance policy go to the beneficiaries of your choosing. Special Needs Trusts If you have a child or grandchild with special needs, this type of trust will ensure that their needs will be taken care of during their lifetime. Revocable Living Trusts Revocable living trusts allow you to retain control of all the trust assets. If you should become disabled, the successor trustee will be able to make decisions on your behalf. Qualified Personal Residence Trusts (QPRT) A QPRT allows you to remove some of your assets from your estate in order to reduce potential estate taxes and preserve more wealth for your heirs. Charitable Remainder Trusts With a Charitable Remainder Trust (CRT), your philanthropic goals can be addressed by leaving a portion of your estate to your favorite charity. Allows for a charitable income tax (or estate tax) deduction Can remove appreciating assets from the donor s taxable estate Charitable Lead Trusts A charitable lead trust makes gifts to your favorite charity for a specified number of years prior to being passed on to your heirs. Grantor Retained Annuity Trusts (GRAT) A GRAT allows you to minimize transfer taxes on assets that are likely to appreciate. The grantor will retain the right to receive an annuity from the trust for a set number of years. At the end of the trust term, the assets are then passed on to the beneficiaries free of additional gift taxes. Bypass (Family) or Credit Shelter Trusts The bypass trust allows you to minimize the tax liabilities for your surviving spouse s estate leaving more for your heirs. It does this by maximizing the use of both you and your spouse s federal unified credits. 4

6 CHOOSING THE RIGHT TRUSTEE Individuals sometimes appoint themselves, a family member, or a family friend as trustee. Your advisor may point out that this is not always the best choice. There are a number of factors you may wish to consider. Experience and expertise Trust laws are complex and change frequently. A trustee has a significant responsibility to keep up with changes in laws affecting trusts. Trustees must give careful consideration to requests for distributions. Trustees must also account for the receipt and disbursement of income and principal from the trust assets, and prepare and file the annual trust income tax returns (state and federal). Trustees face personal responsibility in carrying out fiduciary duties. Objectivity Family situations can become emotionally charged, and this can put a trustee who is a relative or family friend in a difficult position. At these times, it is best to have important issues decided with objectivity. Austin Capital will make decisions that are in the best interest of the beneficiaries with no outside bias. Long-term Reliability Age or illness can prevent an individual from performing the duties of a trustee. Your family s situation may change over the years. A trustee who will continue to be responsive to your needs, and those of your trust s beneficiaries, is a must. A corporate trustee helps to ensure continuity during the full term of the trust, and may be a more fitting long-term choice than appointing an individual. Austin Capital s automated platform enhances access to all information necessary for trust/custodial services as well as trading functions. 5

7 CREATING A PARTNERSHIP WITH YOUR ADVISOR Austin Capital understands the importance of your advisor in your financial plan and has developed a platform that is designed to support your trust needs while allowing your advisor to continue to provide valued services. With our platform, your advisor will continue to play a critical role in the selection and management of your assets while Austin Capital assumes fiduciary responsibility of overseeing the investment policy and your advisor s management. Austin Capital Trust Company has the flexibility to perform roles as needed. Sole Trustee If named as sole trustee, the Austin Capital will assume the administration and fiduciary responsibilities of managing your trust according to the terms outlined in the trust document. Your advisor can continue to have investment management responsibility over the trust assets. Co-trustee If named as a co-trustee, the Trust Company will share all the administrative and fiduciary responsibilities of administering the trust with another named trustee. This could be you or another individual. Your advisor can also continue to have the investment management duties. Successor Trustee Even if you have named yourself trustee in order to continue to manage your affairs, eventually someone will need to step in for you when you are no longer able to act in this capacity. Austin Capital will act in an unbiased manner to execute the provisions of the trust. Keeping accurate records of transactions, filing tax returns, and reporting to beneficiaries are critical roles in serving as Successor Trustee. Agent for Trustee Even if you have already appointed yourself or another individual as trustee, you may benefit from having the Trust Company act as Agent for the Trustee. For many individuals, the administrative aspects of serving as trustee can be a time-consuming burden. By appointing Austin Capital Trust Company to act as your agent, you (or the individual you have appointed as trustee) will still retain fiduciary responsibility as trustee, while Austin Capital Trust Company assumes all the daily administrative duties. Austin Capital Trust Company is a non-depository Nevada-chartered trust company. Investments are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, are not obligations of any bank, and are subject to risk, including possible loss of principal. 6

8 ROLES AND RESPONSIBILITIES With Austin Capital Trust Company, you and your advisor have the flexibility to select the service that is most appropriate for your needs. The following illustration may help you better understand how each of the parties relates to the other, and their respective roles and responsibilities. Grantor (You) You set up the trust with your attorney s assistance, name the trustee(s) to administer the trust, and name your advisor to manage the investments held in trust. Grantor (You) Financial Advisor WORKING TOGETHER The Trust Company Financial Advisor Your financial advisor manages the trust s investments, and may continue to provide you with guidance involving wealth management and estate planning. Austin Capital Trust Company Austin Capital provides administrative services based on the needs of the trust. Austin Capital will serve as the trustee or agent for trustee depending on the appointment. 7

9 THE BENEFITS OF WORKING WITH AUSTIN CAPITAL TRUST COMPANY The goal of establishing a trust account is to put your financial and estate plan into action for your beneficiaries. By working together in partnership, Austin Capital Trust Company and your advisor can ensure that your plans will be carried out as intended. Austin Capital brings a wealth of experience in administering our services. Our team of professionals is dedicated to ensuring that your wishes are executed as outlined in the trust document. Our team makes it their job to stay current with changing trust laws and regulations, and work closely with advisors like yours to help ensure that your needs are met. Trusts managed by Austin Capital Trust Company are administered in Nevada, which may provide you with a number of important benefits, including: Low Income Tax Rate Nevada currently has no state income tax on accumulated income that is not distributed, depending upon trust type. Nevada currently has no corporate income tax and no franchise tax. Preferential Asset Protection Laws Nevada laws allow a trust to be effective for 365 years. Excellent privacy laws to protect you and your beneficiaries. Trust Investments Governed According to Nevada Law Nevada trust laws allow grantors investment flexibility by allowing them to set their own investment parameters. Nevada trust laws also allow for the appointment of an investment advisor to serve along with the trustee. Content provided is general in nature and is for informational purposes only. Content is not intended to be, and should not be construed as (i) legal or tax advice, or (ii) a legal opinion. Austin Capital Trust Company does not provide legal or tax advice. Laws of a particular state or laws that may be applicable to a particular situation may impact the applicability, accuracy, or completeness of this information. Federal and state laws and regulations are complex and are subject to change. Clients should consult their legal or tax advisors regarding their specific legal or tax situations prior to taking any action based upon information provided herein. 8

10 RETIREMENT PLAN TRUST AND CUSTODIAL SERVICES Providing a retirement plan to employees is a true benefit. By working with Austin Capital Trust Company, you will provide protections and safeguards for your employees as well as reduce the personal liability associated with sponsoring a plan. Austin Capital Trust Company provides directed trustee service, trust administration, back-office services, and custodial services to corporate retirement plan sponsors nationwide. Directed Trustee Services Provide protection for retirement plan assets for the exclusive benefit of the employees Provide plan-level reporting and statements Make distributions to plan participants as directed Hold title of plan assets to provide safekeeping Austin Capital s automated platform enhances access to all information necessary for trust/custodial services as well as trading functions. 9

11

12 Austin Capital Trust Company, LLC 200 S. Virginia, 8th Floor Reno, NV (775)