A credit union member may already use the institution for banking and other financial services when a need for trust administration arises. At that point, the member may have questions about whether trust services are available directly, through a related organization, or through a separate trust company.
Trust services offered through credit unions can vary by institution and may involve relationships with specialized trust providers.
When Might a Member Need Trust Services?
Trust services may become relevant when a member:
Creates a trust as part of an estate plan
Needs a corporate or successor trustee
Has an existing trust requiring administration
Needs estate settlement services
Has charitable trust arrangements
Needs ongoing beneficiary administration
The appropriate service depends on the trust documents, the member's circumstances, and applicable requirements.
What Does a Trustee Handle?
A trustee administers a trust according to its governing documents and applicable law. Depending on the trust, responsibilities can include maintaining records, administering distributions, communicating with beneficiaries, and coordinating with other professionals.
A trustee may also have investment-related responsibilities if those duties are assigned under the governing documents or applicable agreement.
Legal and tax matters generally require involvement from qualified professionals in those areas.
Can a Credit Union Work With a Trust Company?
Some credit unions work with trust companies to provide members access to trust and fiduciary services.
Under an arrangement of this type, the trust company may serve as trustee or provide defined fiduciary services, while the credit union continues its existing relationship with the member.
Members Trust Company is owned by credit unions and provides trust, investment management, and fiduciary services to credit unions, their members, and other clients.
The specific responsibilities of the credit union and trust company should be established clearly.
What Should Members Ask?
A member considering trust services may want to ask:
Who will serve as trustee?
What fiduciary responsibilities will the trustee have?
How will distributions be administered?
Who communicates with beneficiaries?
What records and reports will be provided?
How will the trustee work with the member's financial advisor?
What fees and administrative costs apply?
Which questions should be directed to an attorney or tax professional?
Understanding these details can help clarify how the relationship is structured.
How Do Trust Services Fit With Existing Advisors?
A member may already have a financial advisor, attorney, or tax professional. A trust company can have a separate role within that professional network.
For example, an advisor may continue providing investment or financial planning services while the trustee handles fiduciary administration. An attorney may address legal matters, while a tax professional evaluates tax treatment.
The responsibilities of each professional should be established based on the specific engagement.
When Should a Member Consider a Trust Company?
A separate trust company may be relevant when a member needs corporate trustee services, ongoing trust administration, estate settlement, or other fiduciary services.
The decision depends on the member's circumstances and the terms of the trust. Members Trust Company provides trust and estate services in relationships involving credit unions and financial professionals.
Conclusion
Trust services offered through credit unions can involve direct services or relationships with separate trust companies. Members considering these services should understand who will serve as trustee, what responsibilities will be assumed, how administration will be handled, and what fees apply.
Members Trust Company works with credit unions in connection with trust and fiduciary services. The appropriate arrangement depends on the member's circumstances, governing documents, applicable agreements, and law.
FAQ
Do all credit unions offer trust services?
No. Services vary by institution and may be provided directly or through a relationship with a separate trust company.
What trust services may be available?
Depending on the provider, services may include trustee services, trust administration, estate settlement, beneficiary administration, and other fiduciary services.
Can a member keep an existing financial advisor?
Depending on the arrangement, a member may continue working with an existing advisor while a trust company handles its assigned fiduciary responsibilities.
Who should answer legal and tax questions?
Legal matters should be addressed by a qualified attorney, and tax matters should be reviewed with a qualified tax professional.
This article is provided for educational purposes only and does not constitute legal, tax, accounting, or investment advice. Trust, estate, retirement, and tax considerations vary based on individual circumstances and applicable law. Trust and fiduciary services are subject to review, acceptance, applicable law, governing documents, and Members Trust Company's policies and procedures. Investment products and services are not deposits or obligations of, and are not guaranteed by Members Trust Company, any credit union or government agency. They are not federally insured and are subject to investment risk, including possible loss of principal. Readers should consult qualified professionals regarding their specific circumstances.
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.
