Trust & Wealth Management Accounts
A trust is a legal arrangement in which the person creating the trust (the Trustor) allows a third party (the Trustee) to hold assets on behalf of other individuals (Beneficiaries). MidAmerica National Bank’s Trust & Wealth Management Department can act as this Trustee. By choosing MidAmerica National Bank as your Trustee, you can rely upon our vast investment experience, tax knowledge, a cutting-edge trust accounting system, and personalized services such as bill payment and financial management. Trusts can be arranged in a number of different ways depending on the needs and desires of the Trustor, and how they want the assets to pass on to the Beneficiaries.
Revocable Living Trust – A Revocable Living Trust is a trust that is created while the Trustor is still living. This trust can be changed or revoked at any time during the trustor’s lifetime. The assets in the trust will pass down to the beneficiaries in whatever way the trust document outlines. These assets pass free of the costs, delays and publicity of probate.
Testamentary Trust – A Testamentary Trust is a trust that is created by the Last Will & Testament of the Trustor and takes effect upon the Trustor’s death. The assets stay in the Trustor’s taxable estate until death. Upon death, the trust is funded with assets that are subject to probate. The assets of the trust are then held for the named Beneficiaries and distributed according to the trust document.
A Land Trust is a type of Revocable Living Trust in which a third party (Trustee) holds the title to real estate for the benefit of another party (Beneficiary). The property is held in the name of the Trust, not the Beneficiary. This can be a useful tool in keeping property ownership private.
The most common types of insurance trusts seen today are Irrevocable Life Insurance Trusts (aka Crummey Trusts). These trusts are created while the Trustor is still alive and are irrevocable, meaning the trust cannot be changed or revoked after it is created. The trust holds the life insurance policy of the Trustor and pays the premiums if there are premiums due. The Trustor will usually make the contributions to the trust to pay the premium. These contributions to the trust can be made tax free as long as they fall under the Annual Gift Exclusion (currently $14,000). When the Trustor dies, the life insurance policy should not be included in his or her taxable estate as long as the policy was transferred at least three years before the trustor’s death. By shrinking the size of the taxable estate and providing liquidity, ILITs can be a powerful estate planning tool.
When selling a house, property, or business, MidAmerica’s Trust & Wealth Management team can provide Escrow Services to make sure your transaction is completed smoothly. We can hold documents such as deeds until all payment is made and even receive and distribute payments from the buyer to the seller. Call or stop in to see how MidAmerica’s Escrow Services can help facilitate your sales or purchases.
MidAmerica’s Trust & Wealth Management team offers a variety of Investment Management options for all investors, regardless of portfolio size or investment knowledge. We can do everything from simply acting as a custodian to building a portfolio that meets your financial goals while taking into account your appetite for risk.
Investment Management Service – Do you have money that you would like to invest but aren’t sure where to start? Or have you recently received an inheritance that you would like to see grow, but do not have the time or investment knowledge to invest it yourself? Our Investment Management Service can offer full, personalized supervision of your investment portfolio. It begins by signing a simple agreement that allows MidAmerica Trust & Wealth Management Department to hold and invest your assets, according to your goals. We will confidentially discuss your investment objectives, analyze your portfolio, and make whatever changes are needed in order to match investment goals according to your tolerance of risk. Thereafter, we will continue to manage the assets, taking action (buying and selling securities) whenever we ascertain it is needed. We will provide comprehensive reports to outline the progress of your account and will encourage you to meet with us from time to time, or any time there is a change in your goals or investment requirements.
Custody Service – Feel comfortable choosing your own investments but don’t have the time to calculate cost basis and fair market value, deposit dividends, or manage the extensive record keeping needed for when tax season rolls around? Our custody service can perform all the time-consuming administrative chores involved in owning securities. Our trust accounting system will provide you with periodic statements which can be invaluable during tax time.
Have an investment portfolio but want to make sure it is meeting your investment goals? Bring in your statements and account holdings and we can make sure you have a portfolio that can help you reach your goals through bull and bear markets.
Do you have a 401k or other retirement savings plan at an old employer? Rollover your old retirement plan and consolidate your funds in an Individual Retirement Account (IRA) at MidAmerica National Bank. Our Trust & Wealth Management team is knowledgeable in the investment and tax aspects of IRA’s and the rollover process. Consolidate your retirement accounts from different institutions and save on management fees and have your retirement savings in one easy to manage account.
A 1031 Exchange or “Like-Kind” Exchange is an IRS-recognized approach to defer capital gains tax when selling one property and buying another. By “exchanging” the original property for the new property instead of the usual buying and selling that normally happens, the seller is allowed to defer any capital gains on the original property. To qualify for a 1031 Exchange the property in question must be held for productive use for a trade or business, or for investment. A primary residence cannot qualify. The exchange must be for property that is “like kind” (for example, real estate for real estate). These exchanges must be carried out by a Qualified Intermediary. MidAmerica Trust & Wealth management is a Qualified Intermediary and can help facilitate your 1031 Exchange.
Charitable Trusts are an excellent alternative to outright gifting that can be structured in many ways, depending on the needs of the donor or beneficiary. MidAmerica’s Trust & Wealth Management team has the knowledge and experience to handle all types of charitable giving.
Charitable Remainder Trusts (CRT) – Charitable Remainder Trusts are irrevocable trusts that pay out an income stream to the trustor or other named beneficiary for a set number of years. After this period, the remaining assets in the trust (the remainder) go to a qualified charity. The person creating the CRT qualifies for an immediate tax deduction. Also, the gift of the remainder interest to charity is not subject to estate or gift taxes.
Charitable Lead Trusts (CLT) – Charitable Lead Trusts are irrevocable trusts that pay out an income stream to a qualified charity over a set number of years or lifetimes. At the end of the payout term, the leftover assets are distributed to, or held in trust for the beneficiaries that the Trustor names. The income stream to the qualified charity is considered a charitable donation.
Annuity vs. Unitrust – The income streams in the above trusts can take the form of either an Annuity or a Unitrust payout. The difference is in how the payment amounts are calculated. With Annuity payouts, the income is a set dollar amount based on a percentage of the original value of the trust. Unitrust income payouts are based on a set percentage of the trust value that is recalculated annually. Charitable Remainder and Charitable Lead Trusts can have either Annuity or Unitrust income payouts.
MidAmerica Trust & Wealth Management can act as an independent trustee for Funeral Homes who wish to provide pre-need funeral trusts for their customers. Working with your legal counsel, we can assemble and assist in submitting the necessary paperwork with the Illinois Comptroller’s office. We can provide annual reports that can be used to comply with State of Illinois reporting requirements for all funeral trusts. By choosing MidAmerica as independent trustee, you will have local access to experienced administrative and investment professionals. We will provide prompt response to funeral service claims and online access to statements and investment information.
MidAmerica Trust & Wealth Management can act as Financial Guardian in a variety of situations including guardianships for minors, VA guardianships, and court appointed guardianships.
With over 90 years of combined experience, MidAmerica Trust & Wealth Management has the knowledge and experience to help you create a plan for retirement and any other financial goals you may have. We can analyze your current assets and savings and create a plan that fits your needs.
MidAmerica Trust & Wealth Management can act as executor of estates and take care of any administrative duties that need to be performed. We can work with your legal counsel to file the will and other paperwork with the probate courts, collect and account for assets, pay bills and taxes, file tax returns, distribute assets to heirs, and perform the final accounting of an estate. Estate Administration can be complicated and time consuming. Let MidAmerica Trust & Wealth Management make the Estate settling process hassle free.
Are you a business, organization, or individual that often has a large checking account balance? Would you like to earn a return on those funds while still being able to access them at any time? Our Cash Management Services can help you receive a return on that cash. We process our sweep accounts daily, putting your money to work in a money market fund when you don’t need it.