Community Trust Company, located in Camp Hill, A trust is a legal arrangement through which you give property to a trustee to manage and use for the benefit of whomever you name in the trust agreement.
There are two main types of trusts:
- Testamentary - which go into effect when you die. Testamentary trusts are almost always irrevocable.
- Living or "inter vivos" - which take effect during your lifetime. Living trusts may be revocable or irrevocable. Trusts are vehicles to provide for certain actions to take place with the best possible tax consequences. Trusts should be prepared in conjunction with a will, which ensures that any remaining assets (such as furniture) are transferred to your beneficiaries.
Community Trust Company is qualified to serve as Trustee under various types of trust agreements and provides many valuable services including:
- Professional Investment Management
- Income and expense record keeping
- Personal and trust tax preparation
- Prompt fund distribution
- Bill paying services
- Medical claim filing services
When Community Trust Company serves as Trustee of your trust, we can help you and your family through a comprehensive estate and financial planning process, which will not only maximize the benefits of the trust, but will provide you and your family with the personal and financial security you deserve.
Irrevocable trusts established for estate and gift tax planning reasons require careful accounts of all transfers into and out of trust to assure the trust complies with all relevant federal and Pennsylvania tax laws and regulations. Community Trust Company maintains accurate trust accounting records and provides frequent and detailed statements to protect the tax integrity of these trusts.
Life insurance trusts also require a detailed accounting of the transfer of policy ownership and/or payment of premiums to assure compliance with all relevant IRS laws and regulations. Crummey powers, which convert a future interest in trust property into a present interest eligible for the annual gift tax exclusion, are an integral part of any life insurance trust. The Crummey powers usually permit the life insurance trust to be funded without gift taxes. For this purpose, it is critical that the Trustee understands and properly implements the Crummey provisions in the life insurance trust. Community Trust Company provides the professional expertise to deal with these complicated provisions to ensure compliance with all regulatory requirements as well as peace of mind that your life insurance trust is being administered effectively.
Although it is technically permissible for a surviving spouse to be the Trustee of a Marital Trust, the IRS will look carefully and disapprovingly at every transaction in and out of the trust. Community Trust Company frequently serves as Trustee for marital trusts to ensure maximum tax integrity for the trust, and, at the same time, to permit the trust to be drafted with maximum flexibility and benefit to the surviving spouse.
There are numerous types of trusts that provide limited to extensive tax savings. The administration of these trusts can be technical and time consuming. Community Trust Company has the expertise and professional staff to help you implement these estate planning techniques and is well suited to act as Trustee on your behalf.
A corporate trustee can be a significant asset as you implement your estate plan. There are benefits to both professional investment management and detailed trust accounting procedures. Traditionally, trust companies would not allow you to separate these functions. At Community Trust Company we recognize that our clients can not possibly keep up with the changing regulatory environment in administering their own trust, but are quite capable of managing their own investment decisions. We offer the most flexible terms available in the market today, allowing you to separate the investment management function from the administration of your trust. This philosophy enables the grantor to remain involved in the investment management of their trust for as long as they would like. We maintain close contact with the clients existing financial advisor or broker and are ready to assume all investment responsibility if the grantor so chooses or in the event of his or her death or incapacity.
So, whether you need our expertise in trust administration or professional investment management, or both, Community Trust Company offers you the services you need with the flexibility you deserve.
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