Exiting a business is a challenging endeavor which requires a diligently constructed exit plan. As part of that plan, many business owners prioritize business enhancements that serve to improve its readiness and attractiveness. While this is an important step in increasing a company’s gross value, it may not yield the intended result of maximizing the net proceeds an owner receives from exiting their company.
In your role as trustee, you are faced with a number of complexities and obligations. Your responsibilities may include ensuring the trust assets are protected, keeping proper accounts and providing a detailed accounting to beneficiaries. As your agent, we can assist you in completing these tasks through a tailored solution designed to meet your needs
City National Bank’s (City National) Trust and Estate Admininistration Team’s Agent for Trustee solutions include a full range of services. City National trust professionals are experts in the unique requirements of trust custody, recordkeeping and accounting, and can support you in the investment process for trust assets. In addition, their specialized knowledge associated with trust taxation (available as an add-on service to any Agent for Trustee solution) can provide welcome assistance for busy trustees.
City National clients include individuals who have been appointed as trustees of living or testamentary trusts and need help fulfilling some or all of their duties. City National also works with notaries, accountants and other professionals who require specialized expertise in the administration of their clients’ trusts.
In addition to the reassurance that comes from working with trust professionals, you benefit by having the time and effort associated with your trustee duties minimized. Having fewer professionals involved with the management of your trust should also reduce costs and errors. The expertise and organization that your agent provides will bring you — and the trust’s beneficiaries — peace of mind.
Choose the solution that works for you. Regardless of which Agent for Trustee solution you choose, you will receive attentive, reliable expertise to help you in the ongoing management of trusts under your administration. In all cases, you retain final decision-making authority. While not included in City National Bank's Agent for Trustee solutions, full investment management services are available through our City National Rochdale colleagues.
CITY NATIONAL BANK'S AGENT FOR TRUSTEE SOLUTIONS INCLUDE:
COMPLETE SOLUTION
City National supports you in all your trustee duties from custody of the trust assets to assistance with the oversight of real estate held within the trust to a comprehensive annual review, and acting as your representative in beneficiary communications. We also advise you in the considerations and the unique issues related to trust investments and can either introduce you to a City National partner with specialized expertise in trust investment management or liaise with an investment manager of your choice.
ADMINISTRATIVE SOLUTION
City National helps you with select trustee duties related to accounting and custody of assets. You retain responsibility for communicating with beneficiaries, managing any trust real estate, completing the trust’s required annual review and overseeing trust investments.
OPTIONAL ADD-ON TAX SERVICES
City National assists you with tax preparation and filing requirements associated with the trust and in implementing tax-effective strategies for management of the trust.
TRUSTS & ESTATES
The City National Bank Trust & Estate Administration Team is one of the leading providers of trust and estate solutions. City National provides individuals, families and businesses with a valuable and all-encompassing blend of fiduciary, custodial and investment services tailored to their unique needs. Highly skilled trust and estate professionals offer estate settlement and administration services, trustee services, trust structures and other specialized services. City National works with families and businesses who wish to protect their assets and transfer their wealth for generations.
SCHEDULE OF SERVICES – AGENT FOR FIDUCIARY
Does NOT include real property management
Preliminary Work
Have initial meeting and consultation with trustee
Review terms of trust documents
Obtain information related to the trust
Determine roles and responsibilities of agent and trustee
Establish a trust account
Document ongoing instructions
Set up reminder of trust year end
Complete Admin "A"
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Partial Admin "B"
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Assets
Arrange for transfer of assets from present custodian and re-registration of securities as appropriate
Provide safekeeping of securities as appropriate
Document all other assets (promissory notes, mortgages, real estate, non-marketable investments) as appropriate
Process security transactions as directed by investment agent/trustee
Collect interest, dividends and other income earned on trust assets
Provide notices of corporate changes to trustee(s) or investment agent for assets held in custody
Complete Admin "A"
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Partial Admin "B"
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Real Property
Obtain independent appraisal of real property
Provide guidance on securing the real property
Arrange for insurance
Pay property taxes
Pay utilities
Deposit rent payments provided by trustee or property manager
Complete Admin "A"
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Partial Admin "B"
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Promissory Notes/Mortgages
Deposit payments
Track and update outstanding balances
Complete Admin "A"
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Partial Admin "B"
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Payments to Third Parties/Beneficiaries
Pay expenses of the trust from principal or income
Make payments to designated beneficiaries
Provide assistance in discretionary decision process
Distribute trust assets to beneficiary when directed
Periodically distribute trust income to beneficiary
Complete Admin "A"
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Partial Admin "B"
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Trust Accounting and Statements
Record all assets and allocate to principal and income as appropriate
Record and track adjusted cost basis of assets as directed
Provide regular investment statements to trustee and beneficiary detailing book and market value of securities in custody
Provide regular statements to trust’s investment agent, legal advisor and/or accountant detailing investment assets and transactions held in custody
Complete Admin "A"
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Partial Admin "B"
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Tax Reporting
Deduct non-resident withholding taxes from payments to non-resident beneficiaries and remit to IRS
Provide year-end transaction worksheets to trustee or accountant
Complete Admin "A"
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Partial Admin "B"
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Investment Agent Assistance
Provide guidance to trustee on considerations related to trust investment process
Complete annual account review
Complete Admin "A"
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Partial Admin "B"
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Other Services
Coordinate communications and administration with trust’s other professional advisors
Coordinate payments from private companies as instructed by trustee or tax advisor
Assist trustee with trust distributions
Complete Admin "A"
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Partial Admin "B"
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Trust Distributions
Prepare a plan of distribution to beneficiary for custodial assets as directed by trustee
Draft preliminary cash requirements for initial distribution
Complete partial distribution to beneficiary for custodial assets
Complete final distribution to beneficiary for custodial assets
Complete Admin "A"
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Partial Admin "B"
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Important Information
This document is for general information and education only. It is not meant to provide specific tax guidance. The information in this document was compiled by the staff of City National Bank (City National) from data and sources believed to be reliable, but City National makes no representation as to the accuracy or completeness of the information. The opinions expressed, together with any estimates or projections given, constitute the judgment of the author as of the date of the presentation. City National has no obligation to update, modify, or amend this document or otherwise notify you in the event any information stated, opinion expressed, matter discussed, estimate, or projection changes or is determined to be inaccurate.
City National Bank, its managed affiliates and subsidiaries, as a matter of policy, do not give tax, accounting, regulatory, or legal advice. Rules in the areas of law, tax, and accounting are subject to change and open to varying interpretations. Any strategies discussed in this document were not intended to be used, and cannot be used for the purpose of avoiding any tax penalties that may be imposed. You should consult with your other advisors on the tax, accounting and legal implications of actions you may take based on any strategies or information presented taking into account your own particular circumstances.
This presentation (or any portion thereof) may not be reproduced, distributed, or further published by any person without the written consent of City National.
Professional trustee services are offered to City National Rochdale clients by City National Bank which may serve as trustee.
City National Rochdale, LLC is an SEC-registered investment adviser and wholly-owned subsidiary of City National Bank. Registration as an investment adviser does not imply any level of skill or expertise. City National Bank is a subsidiary of the Royal Bank of Canada.
| Non-deposit investment Products are: • not FDIC insured • not Bank guaranteed • may lose value |
© 2024 City National Rochdale, LLC. All rights reserved.
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