WTM Trust Administration

Living Trusts

A Revocable Living Trust (also known as an Inter Vivos Trust) is a trust created during the grantor’s lifetime, which becomes effective during the grantor’s lifetime, rather than at grantor’s death. During the life of the grantor, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries, outright or in trust. It can be amended or terminated during the grantor’s lifetime. It's terms are private and confidential, and not subject to the public scrutiny of a probate proceeding.

Trusts Under Will

A Testamentary Trust (also known as a Trust Under Will) is a trust created by Will, that becomes effective only after the death of the testator. This trust may be designed for the same purposes as a revocable living trust. However, unlike the revocable living trust, it does not become effective until after the death of the testator, and the will has been probated.

Charitable Trusts

Two types of charitable trusts that Community Trust and Investment Company’s Wealth and Trust Management team administers are:

  • Charitable Remainder Trust is an irrevocable trust that provides a specified annual income to one or more non-charitable beneficiaries for life or a term of years. The remainder interest is paid over to one or more qualified charities at the termination of the trust.
  • Charitable Lead Trust is an irrevocable trust that provides income payments to one or more qualified charities for a term of years, after which, the trust assets are paid to one or more non-charitable beneficiaries.

Estate Administration

In serving as executor‚ co-executor‚ or personal representative‚ Community Trust and Investment Company’s Wealth and Trust Management (WTM) provides the following estate administration services:

  • Collect and secure estate’s assets
  • Appraise the estate’s assets
  • Notify creditors and pay debts
  • Collect money owed the estate
  • Manage estate’s assets (real estate‚ securities‚ family-owned business)
  • Keep detailed records of all transactions
  • Submit reports to beneficiaries and probate court
  • Choose tax year for the estate
  • Complete and file income and estate tax returns 
  • Distribute estate’s assets to beneficiaries

Life Insurance Trusts

An irrevocable life insurance trust is created to own life insurance on the life of the grantor. The trust is designed to avoid the inclusion of the life insurance proceeds in the grantor's taxable estate for federal estate tax purposes.

Special Needs Trust

A special needs trust is administered for the benefit of a person receiving public benefits to provide for that person’s additional needs that are not covered by public benefits. The trustee has complete discretion in making distributions to or for the beneficiary; however, the trustee must be extremely careful that any distributions from the trust do not result in the beneficiary’s loss of public benefits assistance.

Conservatorship

A conservatorship is a legal relationship between a disabled person and an individual or financial institution appointed by the court to make decisions for the disabled person.