Trust Services for Individuals and Families
Services for Individuals and Families
In addition to our unique approach to investment management, Christiana Bank & Trust Company offers individuals and families a variety of trust, custody and other asset management services. Our trust services for individuals and families include:- Asset Protection Trusts
- Dynasty Trusts
- Separate Investment Adviser
- Securities Custody
- Investment Performance
- Charitable Remainder Trust
- Charitable Lead Trust
- Grantor Retained Annuity Trust
- Family Limited Partnerships
- Living Trust
- Life Insurance Trust
Note: Not FDIC Insured. May lose value. No bank guarantee.
Trust Services
Carefully implemented trust and asset management strategies can be instrumental in providing for the continued well being of individuals and their families. However, a trust's effectiveness depends greatly on the ability of the trustee. When Christiana Bank & Trust Company is chosen to serve as trustee, it does so in a personal and experienced manner that's tailored to meet each client's requirements and expectations.
We recognize that many individuals do not have a full understanding of their trust and investment options. Many firms are not using the approach we follow. We are a Delaware bank staffed by experienced, knowledgeable and caring professionals committed to personal service. We work closely with our clients and their other professional advisors through every step of the process as we facilitate and help implement an effective financial management program.
We review the client's needs, learn about his or her specific family situation, tax status, and ability to tolerate investment risk and any other particular requirements. Working with the client's trusted advisors, we provide the facilities to implement a strategy that will meet the client's needs and objectives.
The client's ability to implement beneficial strategies is considerably enhanced by Delaware law. Delaware trust may enjoy the following advantages:
Privacy - Many jurisdictions require that trust arrangements be filed with a court. Moreover, trustees must render periodic court accountings. Unlike those states, where information about a person's trust becomes a matter of public record, Delaware courts rarely become involved in trust affairs.
Asset Protection - A Delaware trust can be structured so that assets are protected from the reach of creditors even with the settlor retaining an interest in the trust. The enabling statute was designed to provide an alternative to offshore trusts while taking advantage of Delaware's stability and unique legal system. It is one of the few states to recognize such arrangements.
Permanence - Individuals who are interested in creating a "dynasty trust" should consider establishing a trust in Delaware. Most states limit the amount of time assets may remain in trust. Delaware has enacted legislation which has rejected these limits for most types of assets. Properly structured trusts can remain in existence for perpetuity. These extended trust terms offer an extraordinary degree of permanency and the potential for substantial estate and generation-skipping tax savings for a Delaware Trustee.
Investment Flexibility - Delaware law permits the freedom to include higher risk assets, such as foreign equities or stock options, in a trust portfolio if the trustee determines that including such securities would help meet the trust's overall investment objectives. In making investment decisions, a Delaware trust permits the consideration of the anticipated life of the trust, the tax ramifications of an investment, the needs of beneficiaries, and general economic conditions.
Directed Trusts - Christiana Bank & Trust Company offers directed trusts for those clients who wish to work with a trusted investment advisor but want to use a trust in their planning strategy. We provide the fiduciary services necessary to ensure that the trust operates smoothly. We also offer the same support to individuals who wish to manage their own trust investments.
Tax Advantages - A trust established in Delaware does not have to pay Delaware income or capital gains taxes when there are no Delaware beneficiaries. Similarly, nonresident beneficiaries do not pay state tax on trust income or gains. There often may be other tax benefits associated with being a Delaware trustee as well.
Asset Protection Trust
Christiana Bank & Trust Company provides fiduciary services under arrangements to take advantage of the Delaware Qualified Dispositions in Trust Act.
The Act allows an individual to establish an irrevocable Delaware trust which creditors should not be able to reach but from which the settlor may still benefit.
Trusts established under the Act have been used in strategies that include:
- Asset Protection without the problems of an offshore arrangement
- Gifts for Estate Planning Purposes
Christiana Bank & Trust Company:
- Is authorized to act as a trustee under the laws of Delaware and whose activities are supervised by the Delaware Bank Commissioner and the FDIC
- Maintains custody of trust assets and records of trust activity in Delaware
- Will administer provisions of the trust at its Greenville, Delaware location.
Dynasty Trusts
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Delaware in 1995 rejected the common law principal that limits the duration of a
trust and enacted legislation that allows personal property to remain in trust forever.
Real property can remain in trust for 110 years. This limit can be extended with proper
planning.
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Delaware is one of the few jurisdictions that allows the creation of a perpetual trust
for other than charitable purposes.
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These extended trust terms offer an extraordinary degree of permanency and the potential
for significant planning opportunities.
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This statute makes Delaware a preferred location for an individual who is establishing a
trust arrangement to take advantage of the Generation Skipping Tax exemption for as long
as is legally possible.
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Christiana Bank & Trust Company's stability, knowledgeable administrators, and attention
to detail make us the fiduciary of choice for individuals seeking to take advantage of this
unique Delaware Legislation.
Separate Investment Advisor
Trusts Utilizing a Separate Investment Adviser
Delaware trust law and court decisions have recognized the ability to delegate the investment responsibility in a trust arrangement. Most trustees in other states require that they be involved in all investment decisions.
Christiana Bank & Trust Company provides the facility for directed trust arrangements where an individual or a family desires to work with a trusted investment adviser but where a trust would be useful from a planning perspective.
Unlike many jurisdictions Delaware law permits the freedom to invest in higher risk assets if the trustee determines that including such securities would help meet the trust's overall investment objectives. The trustee may take into consideration the risk level of the entire portfolio, the anticipated life of the trust, the tax ramifications of an investment, the needs of the beneficiaries, and general economic conditions.
Similar support is available to individuals and families who wish to manage their own trust investments.
Christiana Bank & Trust Company's Delaware location, fiduciary experience and professional, capable staff are a resource that can be used by individuals, families and their advisers to implement a successful directed trust arrangement.
Securities Custody
Each client's portfolio or group of portfolios is assigned an experienced account officer. This individual is the client's single point of contact. This officer is supported and backed up by another account manager who is familiar with each individual account.
All assets are held in custody by the Trust Group of Christiana Bank & Trust Company which is a Delaware chartered banking institution. Statements are produced monthly and transactions are reviewed and monitored by your account officer who is located in Delaware.
Records are maintained and client reports are generated on the SEI Trust 3000 system. This proven and tested technology is constantly upgraded to keep pace with changes in the investment industry. This system is utilized by many of the nations largest trust and asset management organizations.
All income is credited on payable date and each trade is settled on a contractual basis through the Depository Trust Company in New York or the Federal Reserve book entry system in Philadelphia.
A wide range of sweep vehicles is available.
Christiana Bank & Trust Company has a proven record of delivering the highest quality custodial services.
Other Trust Services
Other Trust Services for individuals and families offered by Christiana Bank & Trust Company include:
In The Media
Christiana Bank & Trust Company managers are regularly featured in various media outlets. You can see recent examples of these at In The Media.
Investment Performance
Christiana Bank & Trust Company manages equity and fixed income portfolios. Recent results of composites of all fully discretionary accounts are available below. Composites comply with the standards of AIMR. These accounts are not bank deposits, not insured by the FDIC and are subject to market risk, including loss of principal.