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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

Investment and Custodial Accounts

Type

Description
Agency Account Customer and FNB enter into an Agency Agreement to assume certain duties regarding their investments. FNB accepts the assets from the client and assumes investment authority according to the instructions outlined in the Agency Agreement. The agreement can be terminated in writing.
Custodial Account Customer and FNB enter into a Custody Agreement to perform accounting, record keeping, and income collection duties for investments and safekeeping privileges. FNB does not assume investment authority.

Trusts and Estates

Type

Description
 Corporate Trustee or Executor Why have a corporate Trustee or Executor?

Trust and Estate administration duties can be complicated and communication with beneficiaries and family members is important. The Bank is better prepared to handle emotional issues which may arise throughout the entire administration process.

We provide skilled investment advice, safekeeping and record keeping, timely collection and investment of income, bill paying, asset management, tax worksheets, regular reporting and farm management.
 Why a Trust Investment management, provide funds to you and others, continues uninterrupted if incapacitated or after death, avoids probate, timely and accurate record keeping, prevents dissipation of assets, spend thrift provisions can be implemented, minors or special needs provisions can be invoked.

Other Types of Accounts

Type

Description

Property Power of Attorney
(Financial)

Trust department assumes this fiduciary role as outlined in the property power of attorney document. This may include collecting receipts, paying of bills, making investments, manage and/or sell property, etc. This can continue during the lifetime of the individual exercising the power of attorney.
 

Charitable Trusts and Foundations

 More comprehensive estate planning vehicle. This product is mainly used by high net worth customers or individuals without family which 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

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   $100.00 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   $100.00 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.