NBT Financial Group offers comprehensive planning services for the following.
A revocable or living trust is a trust that you can change or cancel during your lifetime. You control a revocable trust and the trust’s earnings are consolidated into your income tax returns. You may continue to manage the assets, or your financial advisor will handle management of your assets under your supervision, and upon your disability. A revocable trust can also be used to transfer assets at death, similar to a will, yet without the formal court-supervised process of probate, where it opens your estate to public scrutiny. Once you pass away, your wishes are final, and thus the trust becomes irrevocable
An irrevocable trust is a trust that cannot be changed or cancelled at any time. This trust is a separate legal entity and its own taxpayer. The terms of many irrevocable trusts, however, allow tremendous flexibility. While many irrevocable trusts come into being at death, irrevocable trusts set up before death are often used to hold life insurance policies, gifts of assets to be available to beneficiaries at a future time, or funds for future charitable contributions.
An irrevocable life insurance trust (ILIT) is typically used to shelter an insurance death benefit from estate taxes and may provide liquidity to pay estate taxes and settlement costs. A trust is created, and then the trust purchases and owns a life insurance policy. Upon death, the insurance proceeds are paid out in accordance with the terms of the trust.
A charitable remainder trust is an irrevocable trust with both income and remainder interests. Income is paid to designated beneficiaries for a term or lifetime. The remainder interest is paid to qualified organizations as specified in the trust document when the trust terminates.
In a charitable lead trust, the trust pays a fixed percentage of assets to a qualified charity for either a set number of years or for the life or lives of the individuals. When the term of the trust has ended, the remaining assets are distributed to the donor or heirs as noted in the terms of the trust.
A private foundation is a charitable organization created and funded by a donor as a trust or a non-profit organization, which is designated to achieve one or more specific charitable functions.
Rabbi trusts are set up by corporations to support non-qualified, deferred compensation plans.
Special Needs Trusts are often established by the parents or relatives of a disabled child, with funds to be used to pay for supplemental or living expenses of the disabled person not paid by other sources. Special needs trusts can also be set up with the disabled person’s own funds, again to provide for supplemental medical or living expenses.
Agency relationships can be set up for any trust or estate where the fiduciary or fiduciaries designate NBT as an agent to undertake the fiduciary responsibilities for the accounts including tax and accounting preparation, administration and asset management.
Guardianships are established to protect and handle the assets of minors or incapacitated adults.
We will assist charities in establishing a charitable gift annuity program and provide ongoing administration and investment management services for the program.