A trust is a property arrangement in which a trustee, such as a person or a bank trust department, holds title to, takes care of, and, in most cases, manages property for the benefit of someone else.  The creator of the trust is called the “trustor” and is also known as the “settlor” or “grantor”.  The bank, as trustee, charges a modest fee for its services, generally based on the market value of the assets.

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Trust accounts vary from a few thousand dollars to millions of dollars. Generally, anyone whose property totals more than $100,000 should investigate the possibilities offered by trusts. Included in the calculation of property are the current value of a home or real estate, savings, stocks, bonds, life insurance and all other assets. Many people are quite surprised to learn what all of their property is worth today.

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A living trust, also called an "inter vivos" trust, becomes effective during the trustor's lifetime and is created by a "trust agreement". A living trust may be revocable or irrevocable, each has different legal stipulations and offers varying advantages.

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A revocable trust, as the name implies, may be revoked or changed by the trustor at any time. Revocable trusts offer no income tax advantages, but assets titled in a trust are not subject to probate in Colorado. An individual may act as their own trustee, or may appoint the bank to act, either from the outset, or as successor.

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Once established, an irrevocable trust cannot be revoked or modified in any way. An irrevocable trust may have estate tax advantages, and it allows trustors to pass their wealth on to family members with written guidelines for future distributions.

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A testamentary trust is established by a Will and becomes effective after the death of the testator. Depending on its terms, a testamentary trust may provide tax advantages, but more importantly it gives the trustee direction on distributions to the beneficiaries. These play an important role in estate planning for people with minor children, family with special needs, or complex family relationships.

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In addition to administering trusts, the bank also offers an Investment Management Account. The client may choose to manage their own investments or take investment advice from the bank while taking advantage of the trust department accounting system, income collection and cash sweep features to maximize cash flow and simplify recordkeeping. This type of account has a standard agreement and will distribute directly to your estate on death.

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Statements are produced on a cycle which best meets your needs, but most commonly statements are mailed to clients quarterly on the calendar quarters. Clients may also choose to have online access to information on their portfolio and trust account activity through a link on the bank's web site.

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• Consultations with clients and their advisors
• Safekeeping of assets
• Collection of income, maturities, and other amounts due
• Portfolio management
• Quarterly accountings, including transaction and asset detail
• Online access to portfolio detail and activity, if desired
• Distributions, based on the trust provisions and needs of the beneficiaries
• Coordination with tax preparers

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