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Trust & Asset Management

At Farmers National Bank, we offer a full array of Trust and Asset Management services including:

Financial Planning

Our financial planning process is based on the following core principles; Assessment, Goal Setting, creating a Plan, Execution of the Plan, and Plan Review. By adhering to this process with every client, we bring structure to your long-term goals and objectives. With the expertise, resources, and personal commitment of FNB's Trust and Asset Management Department, you will have the peace of mind knowing your future is secure.

Asset Management

Need help with your investments? It requires a great deal of time and expertise.

When you open an asset management account with us, we first determine your financial goals and risk tolerance. With this understanding, we then develop investment guidelines to meet your approval.

We have access to research and will analyze the best course of action for your portfolio, given your objectives, risk tolerance and the current market outlook. By delivering comprehensive, risk-sensitive solutions for your asset management needs, we achieve your investment goals.

Retirement Solutions

There are several important tax implications and investment decisions to consider before receiving your 401(k) or other retirement distributions.

Proper management for your retirement is perhaps the most crucial factor in securing your financial future. Management of your retirement plan can be done with a Self-Directed account or an Asset Management account.

If you are confident making and monitoring your own investment decisions, our Self-Directed account is best for you.

On the other hand, if you are not confident making your own investment decisions or simply do not have the time to monitor your portfolio and current market conditions, then our Asset Management account is for you. Your account will be managed and monitored under the watchful eye of our investment professionals.

Trust and Estate Administration

FNB brings years of experience to the job of settling an estate, plus in-depth knowledge of today's ever-changing and complex tax laws. We facilitate all of the details of administering your estate and distributing your assets - making sure your wishes are carried out to the letter. We work closely with you, your family and other professional advisors you choose, and also serve as your corporate trustee or executor as needed.


Rely on FNB to:

  • Collect income and dividends generated by trust or estate assets
  • Distribute income and principal to beneficiaries per your stated wishes
  • Make decisions consistent with your Estate Planning documents
  • Maintain records for your assets and investments

Trust & Estate Taxes:

  • Resources and knowledge to help save time and identify tax savings to simplify your life.
  • Familiarity with special tax questions that arise when an estate is settled

Trust & Estate Settlement Services:

  • Streamline and simplify the whole process
  • Minimize federal estate and gift taxes
  • Gather, safeguard, and distribute assets
  • Pay all debts

Farm Management

As a Full-Service Ag Community Bank, FNB offers a full range of Farm Management services. As part of the Trust and Asset Management services, FNB manages agricultural properties as trustee, executor or as a representative for absentee property owners.


Our expertise includes but is not limited to:

  • Monitoring farm conditions and land prices to maximize profits
  • Marketing and leasing farmland to productive, contentious tenants
  • Reviewing and paying farm expenses
  • Participation and knowledge of USDA and FSA programs
  • Furnish reports and provide safekeeping of important documents

Description of Accounts

Agency Accounts

Customer hires FNB to assume certain duties regarding their investments.

 FEATURES  BENEFITS 
 Definition of agency account A relationship where a customer hires FNB through a letter of instruction (Agency Agreement) to assume certain duties regarding their investments. The duties are disclosed in the agreement which can be terminated in writing. The client then turns over their assets to the Bank and we will manage them according to the instructions in the Agency Agreement.  
 Custodial account This is a simple but complete administrative and custodial service. We perform all the accounting, record keeping, and income collection duties for investments and safekeeping privileges. 
 Investment management account  Includes all custodial duties plus investment management and advice. We accept investment responsibility under guidelines established in the Agency Agreement. 
 Important services Safekeeping, Record Keeping, Regular Reports, Tax Worksheets, Timely Collection and Investment of Income, Skilled Advice for Investments, Bill Paying, and Farm Management 

Types of Trust

Customer hires FNB to manage assets placed within the trust as trustee.

 FEATURES  BENEFITS 
 Testamentary Trust Trust created through a will. 
 Living Trust Trust created through present trust agreement.

REVOCABLE: Customer can terminate the trust at any time.

IRREVOCABLE: Customer gives up the right to terminate the trust.
 Why a Trust
 		 Investment Management, provide funds to you and others, continues uninterrupted if incapacitated or after death, avoids glare of publicity from probate, timely and accurate record keeping, prevents dissipation of assets, spend thrift provisions can be implemented, minors or special needs provisions can be invoked
 Important services Safekeeping, Record Keeping, Regular Reports, Tax Worksheets, Timely Collection and Investment of Income, Skilled Advice for Investments, Bill Paying, and Farm Management

Other Types of Fiduciary Accounts

Products that can be utilized in the Bank's Trust Department.

 FEATURES  BENEFITS 
 

Corporate Executorship

 Trust department acts as executor and administrator through entire estate process.

Why the Trust Department? Estate administration is complicated with dozens of duties as a financial manager required, along with continuing communication with family members. The Bank is better prepared to handle emotional issues that may arise.
 

Power of Attorney

 Trust department takes this fiduciary role as (Financial Estate) outlined by the power of attorney document and state statutes. This may include collecting receipts, paying of bills, make investments, manage and/or sell property, etc. This can continue during the lifetime of the individual exercising the power of attorney.
 

Charitable Trust and Foundations



 		 More comprehensive estate planning vehicle. This product is mainly used by high net worth customers or individuals without family that have strong charitable attributes.
 Guardianship/Conservatorship Court appointed to protect financial estate of minor or disabled child or adult. Must report all receipts and disbursements to court on a timely basis.
 Retirement Plans Individual Self Directed IRAs, Business 401(k)/Profit Sharing Plans, Simple 401(k) Plans

Other Trust Services

Our Trust Department can assist our clients as Power of Attorney, Guardian, Paying Agent, or Escrow Agent.

Schedule of Fees & Other Charges

I. Trust Under Agreement, Trust Under Will, Investment Management & Agency Accounts, Power of Attorney, Charitable Trust & Foundations:


Annual base fee of $400.00 plus a percentage of market value of assets under management calculated and charged monthly:
             
Dollar Amount   Percent of Market Value
First $500,000.00   0.80% of Market Value
Next $1,000,000.00   0.50% of Market Value
Over $1,500,000.00    0.40% of Market Value
Minimum Fee   $750.00

(Note: See VIII A & B for Extraordinary Fees)

 


Services Provided:

  • Asset Custody
  • Bill Payment & Medical Claims
  • Daily Investment of Cash Balances
  • Investment Advice
  • Securities Trading
  • Income Collection & Disbursement
  • Tax Statement
  • Asset Allocation
  • Account Administration
  • Periodic Statement of Holdings & Transactions


II. Executor & Administrator:

1.5% to 5% of Estate assets based on complexity and gross estate plus expenses. Minimum Fee $1,000.00. Services Provided:
  • Asset Custody
  • Bill Payment & Medical Claims
  • Daily Investment of Cash Balances
  • Investment Advice
  • Securities Trading
  • Court Reporting
  • Income Collection
  • Tax Statement
  • Asset Allocation
  • Account Administration
  • Periodic Statement of Holdings & Transactions


III. Custody Accounts (client has full investment discretion):

Minimum Fee $250.00

Dollar Amount   Percent of Market Value
First $250,000.00   0.30% of Market Value
Next $750,000.00   0.25% of Market Value
Over $1,000,000.00   0.20% of Market Value


Services Provided:

  • Asset Custody
  • Daily Investment of Cash Balances
  • Income Collection & Disbursement
  • Tax Statements
  • Account Administration
  • Periodic Statement of Holdings & Transactions


IV. Farm Management:

Farm real estate under management will be segregated from account assets and billed as follows:
A. Minimum management required - 3% to 5% of gross farm receipts
B. Full management - 5% to 7% of gross farm receipts


V. Irrevocable Life Insurance Trust & Land Trust (Billed Annually):

Annual Fee $200.00


VI. Guardianship/Conservatorhip:

Time    Dollar Amount Per Hour
Trust Officer Time   $85.00 per hour 
Clerical Time   $40.00 per hour

Plus asset under management fees (See III), and extraodinary fees (See VIII A & B). Minimum Fee $750.00


VII. Self-Directed Traditional IRA, Roth, SEP and Simple Plans

Fee Description   Fee Amount
Annual Account Fee   $100.00* (effective 01/01/2019)

 

*Additional fees for private issues will be assessed based upon the types of assets held in the IRA.


VIII. Extraordinary Services

A. Extraordinary time required above and beyond the normal and customary time required to service a similar account will be billed as follows:

Time   Dollar Amount Per Hour 
Trust Officer Time   $85.00 per hour
Clerical Time   $40.00 per hour

B. Extraordinary expenses will be billed to the account as follows:

Expense   Bill Amount
1. Mileage    $0.55 per mile
2. Photocopies   $0.20 each
3. Long Distance Phone Charges    as billed
4a. Annual Transaction Fee 200 transactions per year   no charge
4b. Annual Transaction Fee excess of 200 transactions per year    $1.00 each (exempting all internal bank transfers)

Not FDIC insured.

To learn more about how the Trust and Asset Management Department at Farmers National Bank can benefit you and your heirs, contact us today! We welcome the opportunity to help you improve your financial future.