Fall 2024 Wealth Management Newsletter

Cally Peterson

Trust Assistant II

We are excited to have Cally Peterson rejoin our team as a Trust Assistant II. In her role, Cally supports our Trust Officers in ensuring strong administrative support on assigned Trust, Estate, Conservatorship, Bill Pay and Farm Management Accounts. Cally is a true professional and we know some of our long-time clients will be happy to see her smiling face back in the office.   

Melissa Davis

Trust Assistant I

We are excited to welcome Melissa Davis to our team as a Trust Assistant I. She has an A.A. from NIACC and work experience in retail and financial services. Melissa is a native of Marble Rock. She is married with three children and two cats, Luna and Toby.  She enjoys spending time with family, sports, and hiking.

Benefits of Holding Farmland in Trust

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.

Democratic President

8.72% Dem. Congress

15.72% Divided Congress

14.55% Rep. Congress

Republican President

1.04% Dem. Congress

12.20% Divided Congress

11.70% Rep. Congress

Election and Legislation Impact on Financial Planning

Mike Castle, CFP®
VP, Senior Wealth Advisor

As I write this article, we are now less than three months away from the November 5th Election Day. As you can imagine, this often leads to client questions regarding their investments and financial planning. While many of the questions we get from client’s focus on the effect the elections may have on the stock market, the Wealth Advisory team is paying close attention to the potential sunset at the end of 2025 of the 2017 Tax Cuts and Jobs Act (TCJA).  The TCJA was some of the most sweeping tax legislation in decades, and contained a sunset provision that causes the tax code at the end of 2025 to largely revert to its form prior to 2018. This has significant implications on things like standard deductions, tax brackets, and child tax credits among many others. Given that the next President and Congress will need to address this sunsetting during their first year in office, our team will be paying close attention to how the election results might affect the possible extension of many of these provisions, and what pro-active planning could be necessary over the next 16 months or so. 

Staying on the legislative topic – another important piece of legislation that affects our clients was the 2019 SECURE Act and the follow up SECURE 2.0 Act that made sweeping changes to the retirement planning and saving landscape. One of the most significant was the change to how beneficiaries of Individual Retirement Accounts (IRA’s) are able to inherit these accounts. After years of confusion by advisors and client’s alike due to various proposed IRS rule interpretations, there was finally clarity provided this summer when the IRS issued it’s final interpretation of the legislation. This will now allow beneficiaries to move forward with decisions on these accounts with certainty of the rules.  

While the scope of both of these topics is beyond the space available here, please reach out to our team if you have questions regarding how your individual situation is impacted by these various legislative issues.