Written by Chelsea Frederick, CTFA; AVP, Trust Officer
Fall is quickly approaching. Before we know it, the trees will begin to change colors, pumpkins will be picked, chili will be in the crockpot, and football season will begin. Fall also makes for a busy time for many in the Midwest. You’ll see semis waiting to be loaded, combines in the field, and families trying to sneak in a quick meal together as often the farmer is out from sunup to sundown and beyond.
Land is an asset that is often handed down from generation to generation. With considerable assets invested in the farming operation, it is import for farmers to have a well thought out plan in place for their assets both during and after death. One way to accomplish this is through a Trust. Benefits of holding farmland in Trust include:
- Seamless transition of assets at death.
- Structure for how you’d like the land to be managed.
- Property protection from creditors.
- Retention for multiple generations.
- Allows those with interest in farming the opportunity to continue, while assisting other beneficiaries equitably.
There are many moving parts and complexities in managing a Trust. All too often individuals who are named do not have a firm understanding of the rules and regulations, risk and challenges in administering this type of relationship. Naming family members also puts a target on the individual if there are conflicting interests of all beneficiaries. As a Corporate Fiduciary, First Citizens Bank can serve in the role of Trustee for Trusts holding farmland. Benefits of naming a Corporate Fiduciary include:
- Scheduled meetings with the Grantor while living to ensure estate plan is still consistent with their wishes and desires.
- Review of assets to confirm appropriate titling.
- Understanding of tax liabilities associated with land.
- Up-to-date on changing regulations.
- Seamless running of operations following the Grantors death.
- Management of the farm in accordance with the Grantor’s wishes and best interest of all beneficiaries.
- Payment of all expenses related to the Trust.
- Consistent and reliable management of all Trust assets.
- Experienced and professional Trust Officers.
- Continuity and consistency in trust administration.
- Appropriate insurance and oversight through internal governance and external Regulators.
First Citizens Bank aims to take the uncertainty out of leaving a legacy for your loved ones through a Trust. Our team is always available to discuss options with you.