Trust Services Offered by Credit Unions: A Guide for Members
Many people think of credit unions as a place for banking, lending, and savings. As members' financial needs become more complex, however, some credit unions also provide access to trust and fiduciary services through strategic partnerships. Understanding the trust services offered by credit unions can help members prepare for estate planning, trust administration, and long-term wealth management while continuing to work with the financial institution they know.
Not every credit union operates its own trust department. Instead, many partner with an independent trust company to make fiduciary services available to members.
Through these partnerships, members may have access to services such as:
Trustee and successor trustee services
Trust administration
Estate settlement support
Beneficiary distribution administration
Fiduciary oversight
Trust reporting and recordkeeping
Members Trust Company is one example of an independent trust company that partners with credit unions to provide these services while allowing members to maintain their existing credit union relationships.
Understanding Trust Administration
Trust administration generally begins when a trustee’s responsibilities become active under the governing trust document, often after the trust has been established, funded, or otherwise requires administration.
The trustee is responsible for administering the trust according to its governing document and applicable fiduciary obligations.
Trust administration may include:
Maintaining trust records
Administering distributions
Communicating with beneficiaries
Coordinating with professional advisors
Carrying out fiduciary responsibilities
These responsibilities often continue for many years and require ongoing oversight throughout the life of the trust.
Estate Settlement Support
Following the death of a trust creator, estate settlement may involve coordinating with beneficiaries, attorneys, financial advisors, and tax professionals.
A professional trustee may assist by:
Administering trust assets according to the trust document
Coordinating administrative responsibilities
Maintaining required documentation
Working with the family's advisory team throughout the settlement process
Members Trust Company provides estate settlement support as part of its trustee and fiduciary services for partnering credit unions.
Trustee Services and Investment Coordination
Trustees and investment advisors have different responsibilities, but they often work together throughout trust administration.
In many trust arrangements:
The trustee administers the trust.
Financial advisors manage investments when authorized.
Attorneys prepare estate planning documents.
Tax professionals provide tax guidance.
This collaborative structure allows each professional to contribute within their area of responsibility while supporting the member's broader financial and estate planning strategy.
Members Trust Company works with credit unions and professional advisors through this coordinated model.
Why Credit Union Partnerships Matter
Members often prefer to continue working with the financial institution they already trust as their planning needs evolve.
Credit union trust partnerships allow members to access specialized fiduciary services while maintaining continuity in their financial relationships.
By partnering with an independent trust company, credit unions can connect members with trust administration and trustee services without operating their own trust department.
Frequently Asked Questions
What trust services are offered by credit unions?
Many credit unions offer access to trust services through partnerships with independent trust companies. Services may include trustee services, trust administration, fiduciary oversight, estate settlement support, and beneficiary distribution administration.
Does every credit union have its own trust department?
No. Many credit unions provide trust services through partnerships with independent trust companies that specialize in fiduciary administration.
What is the role of a trustee?
A trustee administers the trust according to its governing document, manages fiduciary responsibilities, maintains records, and coordinates with beneficiaries and professional advisors.
How does Members Trust Company work with credit unions?
Members Trust Company works with credit unions by providing independent trustee and fiduciary services that complement the financial services available to credit union members, including trust administration and estate settlement support.
Conclusion
The trust services offered by credit unions can help members address estate planning and long-term trust administration through partnerships with independent fiduciary professionals. Members Trust Company is one example of a trust company that works alongside credit unions to provide trustee services, trust administration, and estate settlement support while complementing the member's existing financial relationships.
This material is for informational purposes only and is not intended to provide legal, tax, investment, or fiduciary advice. Trust, estate, charitable, and retirement-account planning should be reviewed with qualified legal, tax, and financial professionals based on each client’s individual circumstances. Trust services are provided subject to applicable law, governing documents, and the acceptance policies of the trustee.
Trust services provided by Members Trust Company, a federal thrift regulated by the Office of the Comptroller of the Currency. Trust and Investment products are not NCUA/NCUSIF/FDIC insured. May lose value including the possible loss of principal. No financial institution guarantee. Not a deposit of any financial institution. This is for informational purposes only and is not intended to provide legal or tax advice regarding your situation. For legal or tax advice, please consult your attorney and/or accountant.
