Trust services can be a valuable personal and financial asset in times when you need it most. Hometown Trust Services offers many types of fiduciary options, including trustee, agent, executor and guardianships. We can help you, your family, and your attorney design an account that gives you financial security and meets your changing needs.
If you would like help tracking your investments, need assistance paying your bills, or are just tired of dealing with all the details...now may be the time to see what Hometown Trust Services can do for you.
What is an agency?
An agency is an account relationship between 2 parties: a principal and an agent. The title to and ownership of the property, remains with the principal: the agent acts on behalf of the principal and is charged with certain duties. Our agency accounts include:
Work with an agent to satisfy your farm's financial needs and ease your administrative burden. Learn more about how we can assist you with our farm management services.
Our responsibility as agent is to collect all assets the principal wants us to manage, to collect all income and to pay all expenses the principal has directed us to pay.
We act as the paying agent for bonds issued by school districts and municipal governments. We contact the bond issuer to provide us with the necessary funds to pay interest due and pay off the principal on maturing bonds.
What is a Trust?
A trust is a legal relationship under which the grantor transfers title of property to a trustee for the benefit of one or more parties. Legal title is held by the trustee who is under a fiduciary duty to use and invest the property for the benefit of the beneficiaries. Our trust accounts include:
A form of trust that involves only real property. Our responsibility is to only hold title to the property and we have no other duties unless we are directed to sell the property.
This type of trust is established during the life of the grantor. The trust can be revocable (which can be amended at anytime) or irrevocable (which cannot be amended). Title of any trust property is changed to reflect the name of the trust. It would be the trust responsibility to collect assets and income to pay bills, to reinvest assets as they mature, and make distributions to the beneficiaries.
Testamentary Trusts are established at the death of the grantor through a will. Trust responsibilities are to collect assets that flow from the estate to the trust, collect the income, pay bills, reinvest assets as they mature, and to make distribution to beneficiaries.
The trust owns and is beneficiary of the life insurance policy on the trust grantor. The trust is funded only after the death of the grantor. Funds are invested and distributed according to the trust agreement.
This type of trust can be set up either as a living trust or a testamentary trust. The beneficiaries of the trust are normally a qualified non-profit organization or the public. Our responsibilities are the same as with the other types of trusts. We follow terms and conditions set up in the trust agreement. These types of trusts may require additional reporting to other government entities.
The trust department can also be appointed as either executor or administrator for an estate. Our responsibilities are to collect and make an inventory of the estate assets, pay the claims to creditors, pay any estate taxes, collect income and pay all expenses. We also work with executors and administrators to set up an agency account for an estate where we do the accounting.
We only accept appointments for Guardian of property. Responsibilities include collecting all assets and income; paying bills and reinvesting the assets when they mature, and making required reports to the court on a periodic basis.
Contact Our Trust Specialists
Alice B. Thorman
With all types of accounts, the trust department, according to the actual terms of a trust agreement, will complete tax information gathering for the accounts and send them to the preparer or any other type of reporting that is required. An account reporting of assets and account activity will be given to the grantors or anyone that is required to receive a report at least annually.
Each individual agency or trust is administered according to each individual agreement. The terms can be as simple or complicated as the grantor deems necessary for their individual needs.
Contact your Hometown Trust Services Administrator for a complete list of service fees for an agency or trust account. If you have questions regarding a trust, please feel free to inquire at your local Hometown Community Bank.