There have been times in your life when you made a promise to yourself.
Perhaps you sealed your vow to love and protect with a kiss. You may have held
a child in your arms and promised to care for him always. Perhaps you watched a
donation improve your community and promised yourself to do more someday.
A trust is an option that many people use to help keep promises. You can be
confident when hiring a professional trustee like MassMutual Trust Company,
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We have all made promises to ourselves of one kind or another. Many times those promises are
to care for those we love most. Some promises can be fulfilled now – perhaps you have promised
to provide financial security for you and your spouse or partner during retirement. Some promises
may be to care for generations to come. A trust administered by MM Trust can help you keep
those promises.
Whether you are thinking about using a trust or if you are struggling to manage an existing trust,
MM Trust can help by providing fiduciary care with concierge and customized trust services. Our
fiduciary obligation compels us to ensure that we are always acting in your best interest. Once
a trust is placed with MM Trust, you will have the peace of mind that you have taken necessary
steps to ensure you maintain control over your immediate and long term financial objectives,
while keeping your promises to the people you care about most.
Fiduciary care
Fiduciary care means we have the responsibility to act solely in the best interest of the trust beneficiaries, under circumstances that require the use of reasonable care, skill, prudent judgment and rigorous accountability on a continuing basis. Along with administrative and regulatory responsibilities, our fiduciary care includes concierge services and the prudent investment, preservation and oversight of trust assets. We use our disciplined investment management process and approach to manage your assets while mitigating risk according to the objectives set forth within the trust.
Concierge services
Our concierge services start with our team of experienced and credentialed professionals. Each trust account is assigned a dedicated Trust Officer and a dedicated Investment Officer who work with your existing financial team during the planning process and throughout the life of
A trust can help you fulfill promises
the relationship. This team approach provides you with a full array of resources to address your ongoing needs. Our concierge services as part of the administration of trust accounts include, but are not limited to the following:
• Multi-generational planning and wealth transfer:
Through the execution of multiple giving techniques such as generation skipping transfer (GST),
annual and lifetime exemption gifts and other tax advantaged techniques, MM Trust can help maximize the legacy available to the coming generations. • Bill payment service: MM Trust can pay bills and
Trust specific services
Some of our services are specific to the fiduciary care we provide to our trust clientele. Each of these services is integral to our approach to administering your trust so you can enjoy your current lifestyle and leave a legacy for those you care for.
Management of assets:
Prudent investment management and ongoing monitoring are fundamental services required to ensure that the investment objectives of the trust are met.
Trust accounting:
Extensive records are maintained for regulatory purposes and to provide the right amount of detail for regular client statements.
Tax services:
These services include the preparation of taxes for trusts, interfacing with other professional advisors on tax-related issues, providing timely, easy-to-read, comprehensive year-end tax information, and continuous monitoring of the trust assets and goals to identify tax reporting issues.
Confidentiality:
The privacy of all persons involved in the trust is of the utmost importance to us.
Treatment of beneficiaries:
Trust beneficiaries are treated impartially and without bias.
Regulatory agencies:
Trusts are administered in accordance with the required rules, procedures and regulations.
• Estate planning assistance: MM Trust has
experienced trust officers and investment officers on staff, many of whom have fiduciary-related professional designations or law degrees, who will work closely with you and your financial professional, your certified public accountant, and your attorney – your team of trusted advisors – to help develop an estate plan that meets your short and long term objectives.
• Manage legacy holdings: We have the ability to
manage your current legacy holdings and create a divestiture plan over a period of time in order to maximize tax efficiency.
• Money transfers: Timely direct deposits, wires and
ACH transfers can be executed at your convenience to the account of your choice.
• Cash management services: We can coordinate
liquidity events, provide multiple tax efficiencies and facilitate the timing of financial transactions.
• Account access and reporting: Secure, online access
to your account is available at any time. Consolidated reporting with transactions and performance reports is provided on the schedule you choose.
The MM Trust offers a combination of fiduciary care,
a wide array of services, and a closely managed
investment platform to help you reach your long term
goals and provide you with the financial peace of
mind you deserve.
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Choosing Trustees and the right type of trust
When considering a trust, there are a number of important factors to keep in mind. Once you
understand the responsibilities of a Trustee, you will need to decide the role that the Trustee
or Trustees will play in administering the trust. You have the ability to choose an individual, a
professional trustee, or a combination of both for the role. Finally, you’ll need to determine the
type of trust that meets your goals.
The responsibilities of a Trustee
A Trustee is required to administer the trust according to the terms set forth in the trust document while keeping the beneficiaries’ best interests in mind. It is the respon-sibility of the Trustee to invest trust assets appropriately and prudently.
The Trustee also provides accounting (assets, liabilities, receipts, disbursements; records of Trustee actions and routine trust actions; income, estate and gift taxes) and communicates information to the relevant parties. When working with multiple beneficiaries, the Trustee is required to treat each impartially, while considering future beneficiaries.
Individual vs. professional Trustees
In trust planning, one of the most important decisions to be made is the appointment of a dependable Trustee to ensure that your wealth is managed and distributed according to your wishes.
When selecting a Trustee, many people consider a trusted family member or a close friend for the role. However, being a Trustee can put this person in a difficult position with a high level of responsibility. It can also put a strain on family relationships. Another consideration is that family members and friends rarely have a full understanding of the issues, complexities and regulatory requirements that come along with a trust. Many times these individuals must hire outside professionals to help assist them in carrying out the trust’s terms.
Individual acting as Trustee
(a family member or friend)
Professional Trustee
(MM Trust)
Resources • May only be able to work part-time
• May have little to no experience or track record • May need to separately employ specialists
• Has full-time, trained, professional and credentialed staff and specialists
• Staff and specialists who have many years of experience administering trust accounts
Cost • Fees of various other specialists increase overall cost
of relationship • Offers multiple services at one fee
Objectivity • Might have a conflict of interest due to
familial relationships • Impartial third party
Continuity • Service may be interrupted by illness, death or disability • Wholly-owned subsidiary of MassMutual Life Insurance Co., a financial institution that has been in business for more than 163 years
Investment
Knowledge • May not be experienced in asset management• May hold cash uninvested for periods of time, which
may dampen long term performance
• Substantial experience in managing all assets including unique assets • Reinvests cash daily
Communication • May communicate infrequently with beneficiaries and
Agent for Trustee
The role of Agent for Trustee is the one we are most
commonly assigned. In this role, a family member or
close friend who is Trustee hires MM Trust to act as
their Agent. Critical and important responsibilities
are delegated to MM Trust so that the Trustee
feels confident that fiduciary responsibilities and
investment management activities get completed.
You have other options for choosing a Trustee. You can rely on an established and experienced trust company. A professional Trustee such as MM Trust adds a
depth of resources and objectivity that an individual cannot provide.
Choosing a Trustee is an important decision. Deciding whether an individual Trustee, a professional Trustee or a combination is right for you should be considered carefully.
A variety of professional Trustee roles
Another factor in choosing the right Trustee is to consider what role the Trustee would play to administer the trust. Generally, there are four roles in which MM Trust can be used.
• Sole Trustee: MM Trust assumes all administrative
responsibilities, investment management decisions and discretionary distributions in accordance with the terms of the trust document.
• Co-Trustee: MM Trust takes care of the
adminis-trative and investment management responsibilities, with delegations. Discretionary decision-making responsibilities are shared with the other
Co-Trustee(s).
• Successor Trustee: MM Trust steps in when the
current Trustee is no longer willing or able to serve as Trustee.
• Agent for Trustee: MM Trust takes care of the
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Selecting a trust is unique to each person’s circumstances. There are different types of trusts
to meet a variety of goals. Trusts are designed to address your personal wishes – and help you
keep the promises that you have made to yourself. Trusts will help you maintain control over how
your estate is managed, preserved and distributed, especially if you want access to professional
investment management advice and services or seek specific expertise.
Specific trusts for specific goals
What do you want to achieve?
What type of trust will get the
results you want?
What is the benefit of this
trust structure?
Have a plan in place should you becomeincapacitated Revocable Living Trust A revocable living trust helps you: • Manage some of life’s unforeseen
circumstances such as a disability.
• Explain your wishes for your children when you are no longer in the picture
• You can retain control of the trust and change or have it revoked during your lifetime
• Trust assets pass directly to beneficiaries without going through probate, which helps eliminate challenges to estate
• Avoids probate and maintains privacy Provide funds for estate settlement, asset and
some creditor protection for beneficiaries Irrevocable Trust An irrevocable trust helps you:
• Pass on assets to family using gifting advantage while avoiding probate and estate taxes • May avoid estate taxes on the appreciation of
trust assets
• An irrevocable trust and its provisions cannot be changed or modified once it is signed
• Creditor protection for beneficiaries
Passing on assets to family Leaving a legacy for your family
Irrevocable Life Insurance Trust:
An irrevocable life insurance trust helps you: • Maximize life insurance benefits by providing
liquid assets to maintain family lifestyle
• An irrevocable life insurance trust removes the life insurance death benefit from the estate • Create a tax-advantaged way to transfer wealth
to your loved ones Give to a favorite charity without endangering
income to you or your family Charitable Remainder Trust: A charitable remainder trust helps you: • Support your favorite charity
• Allows you to enjoy an income stream while avoiding capital gains tax
• Provides an income tax deduction Provide care for a loved one with special needs Special Needs Trust:
A special needs trust helps you:
• Have peace of mind – knowing that a loved one that may not be able to care for himself will be cared for
• The trust is structured to continue the person’s eligibility for government programs and benefits • Provides for additional lifestyle needs
Provide some financial security for your children
after your lifetime Trust Under Will (Testamentary Trust).• A trust under Will can perform many of the functions of other trusts.
• Does not take effect until your death
• A trust at death is created under a Will • Changes can be made to the trust throughout
your lifetime
© 2014 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for The MassMutual Trust Company, FSB is a federal savings bank chartered by the Office of the Comptroller of the Currency to provide discretionary and nondiscretionary trust and fiduciary services in all states. The Trust Company does not engage in banking activity (take deposits, make loans, give mortgages, etc.) and does not sell products. Our business activity is limited to providing trust and fiduciary services. The MassMutual Trust Company, fsb is a wholly
owned subsidiary of Massachusetts Life Insurance Company. All loans and lines of credit are issued by State Street Bank & Trust. Please note, IRAs and any plans subject to ERISA regulations are not eligible for loans and lines of credit.
