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Trust & Financial Services

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

Financial Planning

Our Financial Planning process is based on five core principles: Assessment, Goal Setting, Creating a Plan, Execution of the Plan, while Monitoring and Reassessment. By adhering to this process with every client, we can bring structure to your long term objectives and goals. We are professionals dedicated to your success and will provide you a continued and long term relationship.

Investment Management

Full-time supervision of your portfolio.

When you open an Investment Management Account with us, we draw upon our sources of research and analysis to manage your money. In a sense, we become your institutional investor, which helps to avoid the pitfalls of reactive, emotional investing.

The buy and sell decisions that we make for your account – or if you prefer, the recommendations submitted for your approval – represent our independent judgment of the best course of action for your portfolio, given your objectives, risk tolerance and the market outlook.

To open an account, you sign a simple agreement designating us as your agent and deliver the assets that you wish us to manage. You continue to own your securities, and you may add or withdraw funds or terminate your account at any time.

Retirement Solutions

Tax deferral and careful management of retirement capital. 

At retirement the habits of accumulation, honed over a lifetime, must change. Retirement is when one begins to live on investment income and, perhaps, on principal as well, That may entail a gradual change in investment strategy. As we counsel those approaching retirement, we generally cover these themes:
  • Hang on to your long-term perspective. Your retirement may last for 20 to 30 years, perhaps even longer. During that time inflation is bound to be a problem from time to time. To reflect that fact, your portfolio should continue to incorporate growth elements.
  • Balance your risks. Investors learned all too well in recent years that markets can go down as well as up. Careful diversification among and within asset classes can reduce an investors overall risk exposure.
  • Pay attention to taxes. Are you managing your investments in a tax efficient manner? Are you taking advantage of the low tax rates applied to most corporate dividends? In your tax bracket, do tax-free municipal bonds make sense? These are just a few of the questions that retirees need to wrestle with, and we can help.

Estate Settlement

In reality, estate settlement involves a demanding, complex set of tasks – and the results, for better or worse, depend upon the experience, skills and judgment of those you designate to handle the job.

The executor or personal representative you name in your will is responsible for safeguarding the assets of your estate, for paying proper debts, for contesting improper claims, for collecting sums owed the estate, and for filing estate and income tax returns. Your executor must decide what to sell (and when) to pay taxes and estate expenses and what to hold for distribution to your beneficiaries or to trusts that you establish for their benefit.

In less complicated times, people relied on close relatives or friends to settle their estates. Today, naming an inexperienced executor is not only shortsighted but also potentially costly. The characteristics of an ideal executor or personal representative include:
  • Financial responsibility
  • Unquestioned integrity and freedom from personal bias
  • Patience and sympathy
  • Experience in caring for all types of assets and holdings
  • Informed investment judgment
  • Familiarity with special tax questions that arise when an estate is settled
  • Immortality (What if your executor dies before you do, or before completing the settlement of your estate?)
We provide specialized skills in all phases of estate administration. As your executor, we’re sure to be on hand when needed, and no relative or family could hope to match our experience and facilities. Yet our fees for estate settlement are no greater than inexperienced individuals might be entitled to receive.

Agent for Executor or Trustee

Because many people are unfamiliar with the complexities of estate settlement, especially for larger estates, they may name a family member as executor of their wills, or as trustees for trusts created for long-term preservation and management of family wealth. Once an individual has accepted the office of executor or trustee, he or she may quickly learn that there is quite a lot to do on the job.

We can provide agency services to give the individual crucial support. Such services may include:
  • recordkeeping;
  • investment management;
  • tax planning and return preparation;
  • accounting and reporting;
  • discretionary distributions in accordance with the trust agreement.
Our role in such circumstances can be tailored to meet the needs of the situation. We can take on just as much work as is wanted to get the estate settled or to keep the trust functioning smoothly, no more no less.

Description of Agency Account and Trust

Agency Accounts

Customer hires FNB to assume certain duties regarding their investments.

 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.

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

 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.


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 .80% of Market Value
Next $1,000,000.00 .50% of Market Value
Over $1,500,000.00 .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 .30% of Market Value
Next $750,000.00 .25% of Market Value
Over $1,000,000.00 .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 $30.00
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 $ .55 per mile
2. Photocopies $ .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.