Understanding the Trust Services Offered by Credit Unions Through Strategic Partnerships

TrustsCredit Unions
Written By May Franco

Many credit unions build lifelong relationships with their members, helping them navigate everything from saving for a first home to planning for retirement. As members' financial lives changes, estate planning and trust administration may become part of the conversation. The trust services offered by credit unions are often made available through strategic partnerships with independent trust companies, allowing members to access specialized fiduciary services while continuing their relationship with the credit union.

Many credit unions do not operate their own trust departments. Instead, they partner with independent corporate trustees that specialize in fiduciary administration.

Through these partnerships, members may have access to:

  • 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 supporting the member's existing financial relationship.

The Role of a Corporate Trustee

A corporate trustee administers a trust according to its governing document and applicable fiduciary responsibilities. Unlike financial planning or investment management, trust administration focuses on carrying out the legal and administrative responsibilities assigned to the trustee.

These responsibilities may include:

  • Administering trust assets

  • Managing beneficiary distributions

  • Maintaining trust records

  • Coordinating with beneficiaries

  • Working with financial advisors, attorneys, and tax professionals

Members Trust Company provides independent trustee services that complement the work of the member's broader advisory team.

Benefits for Credit Union Members

Strategic trust partnerships allow members to access specialized fiduciary services without leaving the financial institution they already know.

Potential benefits include:

  • Continuity in existing financial relationships

  • Access to professional trust administration

  • Coordination among trusted advisors

  • Long-term fiduciary oversight

  • Estate settlement support

This collaborative model allows each professional to contribute within their area of responsibility while supporting the member's overall estate planning strategy.

Supporting Broader Wealth Planning

Trust administration is often one component of a broader wealth planning process. Estate planning, financial planning, and fiduciary administration frequently involve multiple professionals working together.

A coordinated planning team may include:

  • Credit union representatives

  • Financial advisors

  • Estate planning attorneys

  • Tax professionals

  • Corporate trustees

Credit unions continue serving members through their financial relationship. Attorneys prepare estate planning documents. Tax professionals provide tax guidance. Trustees administer the trust according to its governing terms.

Members Trust Company works within this collaborative model by providing independent trustee and fiduciary services alongside the member's existing professional advisors.

Why Strategic Partnerships Matter

As members' planning needs evolve, credit unions can expand the services available to them without creating an internal trust department.

By partnering with an independent trust company, credit unions make fiduciary administration available through experienced professionals while preserving the trusted relationships members have already established.

Members Trust Company supports this partnership approach by working with credit unions to provide trust administration that complements existing financial services.

Frequently Asked Questions

What trust services are offered by credit unions?

Many credit unions offer access to trustee services, trust administration, estate settlement support, fiduciary oversight, and beneficiary distribution administration through partnerships with independent trust companies.

Why do credit unions partner with corporate trustees?

Corporate trustees provide specialized fiduciary administration that many credit unions choose to offer through strategic partnerships instead of operating an internal trust department.

What is the role of a corporate trustee?

A corporate trustee administers trusts according to their governing documents, manages fiduciary responsibilities, maintains records, and coordinates with beneficiaries and professional advisors.

How does Members Trust Company work with credit unions?

Members Trust Company partners with credit unions by providing independent trustee and fiduciary services, including trust administration and estate settlement support, while coordinating with financial advisors, attorneys, tax professionals, registered investment advisors, and other professionals involved in the member's planning process.

Conclusion

Strategic partnerships allow credit unions to make trust and fiduciary services available to their members without operating an internal trust department. By partnering with independent trust companies such as Members Trust Company, credit unions can offer access to trustee services, trust administration, and estate settlement support while maintaining the trusted member relationships they have built over time.

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.

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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.

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