Frequently Asked Questions
Does ING Trust draft trust documents?
Although ING Trust does not draft legal documents for your clients, we will provide sample documents to your client’s attorney and we are available to answer any questions about our services. It is important that you continue to cultivate relationships with attorneys and ask for referrals.
Why shouldn’t the client, a family member or friend be the trustee?
With irrevocable trusts, having the client or a beneficiary as the trustee may negate the purpose of the trust and could pull assets back into the estate. With revocable trusts, that strategy could work well for some clients, but not all situations are the same. There are many potential drawbacks to this type of arrangement.
With a family member or friend as trustee, that person controls the trust.
- How can your client be assured their wishes will be followed?
- What degree of transparency will the beneficiaries enjoy? ING Trust produces monthly statements for grantors/beneficiaries to review. Will a family member or friend be able to provide appropriate trust record-keeping and statements?
- Will the trustee be capable of performing their duties when your client dies? There are time deadlines and tax forms that may need to be filed and possible elections on tax treatment to be made.
- Does your client realize the significant reporting and fiduciary responsibilities that go along with serving as trustee? These can be quite burdensome to a family member or friend. The chosen trustee may even be accepting personal financial liability for any perceived investment, reporting or distribution mistakes they may make.
How am I compensated for funded trust accounts?
When ING Trust manages the trust assets, you are paid a percentage of the trust’s annual market value fee determined by the marketable securities in the trust. With our Advisory Services investment program, your advisory fee or other compensation flows through your normal compensation structure.
Questions and Support
ING Trust Regional Trust Consultants will work with you and your client to suggest strategies for tax reduction, asset distribution, control and giving techniques. Once a trust is established, we will administer the trust according to the terms of the document and for the benefit of all beneficiaries. As trustee, we are responsible for:
- Managing or overseeing investments
- Recording all transactions
- Tracking cost basis
- Performing trust accounting and segregating principal and income
- Making scheduled and discretionary distributions
- Paying bills
- Managing life insurance policies
- Providing certain IRS required notifications to beneficiaries.