Trust

Trust Administration Services from Republic Bank & Trust

A trust can be a powerful tool to incorporate into your estate planning. It can ensure that your loved ones are provided for, that your assets are distributed according to your wishes, and that the amount you pay in estate taxes is potentially lowered. (Consult your tax advisor.) Should you decide that adding a trust to your estate plan is in your best interest, choosing the right people to help guide you through the process of creating it will be the first of many important decisions you will need to make. At Republic Bank & Trust, we understand that everyone’s situation is unique. We realize that, while many of us share the same hopes and goals for ourselves and for our loved ones, the way in which each of us wishes those goals to be accomplished is often a matter of personal preference. Let the professionals at Republic Bank & Trust work with you to ensure that your trust will accomplish your goals and that it will be administered in a way that reflects your own personal approach to accomplishing them.

What is a trust?

A trust is a legal entity into which you are able to transfer ownership of some or all of your personal assets for the purpose of later transferring those assets and/or bestowing benefits from those assets to whomever you choose (a relative, a friend, an entity such as a charitable organization, or even yourself).

The recipient of the assets or benefits is called the beneficiary. Assets moved into the trust are managed by an individual(s) of your choosing called the trustee(s). The trustee manages the assets for the benefit of the beneficiary according to your instructions stated in the trust. For example, you could create a trust, fund it with money held in one of your bank accounts, and then instruct the trustee on how the money is to be used. You could, for example, instruct the trustee to reimburse your child (a beneficiary) for the cost of his college tuition at the end of every semester and to pay a predetermined amount to an elderly relative (another beneficiary) at the beginning of each month to help with his expenses.

What are some of the benefits of setting up a trust?

  • Your trust can provide you with peace of mind.

    When you establish a trust, you are in control of how your estate will be administered. From providing for your children’s education to making lasting donations to the causes closest to your heart, creating a trust can help to ensure that your wishes and responsibilities are fulfilled long after you are unable to do so yourself.

  • A trust can keep you in control of your assets and ensure that you maintain your standard of living, should an unforeseen event occur.

    You can name almost anyone to be the trustee and/or beneficiary of your trust, including yourself. As the trustee, you would then be administering the assets of the trust for the benefit of yourself. Your trust can include instructions stating that when you are no longer able to administer it yourself, a successor trustee will take over those responsibilities for you. You can further specify exactly how the successor trustee is to use the remaining trust’s assets. For example, you can instruct that all of your current living expenses, as well as any future expenses that enable you to live as independently as possible (e.g., in-home nursing care, housekeeping, landscaping) be paid for out of the assets of your trust.

  • Your trust can help to ensure that your children’s inheritance is not misspent.

    If you are not comfortable with the possibility of your adolescent children receiving a large, lump sum inheritance, a trust can be created in which you specify how each child is to receive his or her money. For example, if you have three children, you can instruct the trustee to pay a predetermined amount to each child on his or her birthday and an amount equal to an even share of the remaining trust’s assets on each child’s 21st birthday.

  • Moving assets into a trust helps to ensure your privacy.

    Unlike a will, which must often be administered by a probate court and entered into the public record, the details of a trust are usually known only to you and those you choose to share them with. Using a trust to transfer ownership of assets to your beneficiaries helps to ensure that many personal and financial matters that you wish to keep private are kept private.

  • Having your assets in a trust could minimize your taxes.

    Consult your tax specialist for information on how moving your assets into a trust may reduce the amount of taxes you are required to pay.

What are some of the benefits of having a Corporate Trustee?

  • A Corporate Trustee has the experience to administer your trust from day one.

    How many of the people on your list of potential trustees can say that they are knowledgeable in trust administration? Even if they possess the best of intentions, when it comes to something as important as properly administering your trust, there is simply no substitute for experience and expertise. Republic Bank & Trust is knowledgeable in trust administration, and choosing Republic Bank & Trust as your Corporate Trustee means that from day one, your trust will be administered by a team of experienced professionals.

  • Naming a Corporate Trustee ensures that there are no lapses in the administration of your trust.

    When you name individuals as trustees, you risk having to contend with potential lapses in the administration of your trust due to unforeseen events such as an individual becoming ill or incapacitated, moving out of the area, or resigning as trustee. Naming Republic Bank & Trust as your Corporate Trustee frees you from worrying about these possibilities and ensures the continuity of your trust’s administration.

  • A Corporate Trustee’s decisions pertaining to trust matters will not be biased by outside influences.

    Individual trustees may be exposed to, and have to contend with, pressures from outside influences, differing opinions, or personal feelings that could affect their decisions about how your trust is administered. Corporate Trustees are concerned only with the instructions you have included in your trust. When you select Republic Bank & Trust as your Corporate Trustee, we understand the significance of our obligation to you and respect the fact that you have entrusted us with such an important role. There’s a reason why you had your trust written the way it is written. At Republic Bank & Trust, we keep that foremost in our mind when making decisions pertaining to its administration.

I have other questions. How can I get more information?

Simply call (405) 579-5447 to speak with a Trust Specialist who will be happy to answer any questions you may have.

I’m ready to set up my trust. What’s my first step?

If your trust has already been created, call us at (405) 579-5447 to schedule an appointment with a Trust Specialist.

If you have not yet created your trust, you can use our Estate Planning Tool here to help you accurately inventory all of the assets in your estate, as well as document all of the information required to create your trust. We highly recommend that you have a lawyer draft your trust documents. If you do not know a lawyer who specializes in estate planning, we work with several in the Norman area and are happy to make suggestions.

Glossary of Terms

Most of these definitions are taken directly from the Unified Trust Code (UTC). While Oklahoma has not adopted the UTC as its standard for how trusts are created and administered, the definitions are sufficient for gaining a basic understanding of the terms used in a trust instrument.

Beneficiary

A person that has a present or future beneficial interest in a trust, vested or contingent; or in a capacity other than that of trustee, holds a power of appointment over trust property.

Conservator

A person appointed by the court to administer the estate of a minor or adult individual.

Guardian

A person appointed by the court (a parent, or a spouse) to make decisions regarding the support, care, education, health, and welfare of a minor or adult individual. The term does not include a guardian ad litem (a term used in law to refer to the appointment by a court of one party to act in a lawsuit on behalf of another party).

Settlor

A person, including a testator, who creates, or contributes property to, a trust. If more than one person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to that person’s contribution except to the extent another person has the power to revoke or withdraw that portion. The settlor may also be referred to as the donor, grantor, or trustor.

Spendthrift Provision

A term of a trust which restrains both voluntary and involuntary transfer of a beneficiary’s interest.

Trust

A trust is an instrument into which you are able to transfer ownership of some or all of your personal assets for the purpose of later transferring those assets and/or bestowing benefits from those assets to whomever you choose (a relative, a friend, an entity such as a charitable organization, even yourself).

Terms of a Trust

The manifestation of the settlor’s intent regarding a trust’s provisions as expressed in the trust instrument or as may be established by other evidence that would be admissible in a judicial proceeding.

Trust Instrument

An instrument executed by the settlor that contains terms of the trust, including any amendments thereto.

Trustee

The person who holds the legal title to trust property and acts in accordance with the instructions set forth in the trust instrument by the settlor for the benefit of the beneficiary.