“If you don’t know about clients’ trust and estate plans, then you are not their go-to advisor. Someone else is.”
TCA is proud to welcome you to our website. Please contact us if you have any questions about TCA TrustCorp America and the services we offer.
In a word, Flexibility. Advisors work hard to do their best for the client. TCA can help advisors do their best by permitting non standard assets that other Trustees will not permit. TCA is flexible in the use of the advisers and clients choice of custodian or service provider. We currently have relationships with Schwab, TDAmeritrade, LPL, Fidelity and RBC to name a few.
Advisors may someday hope to retire or seal their practice to another Advisor who uses another service provider. Even if a service provider offers Trust services, a service provider who is currently serving as Trustee may not willingly transfer a Trust account to another service provider. TCA is here to serve the client and the financial advisor community.
Trusts usually have many complex issues involving tax, legal, and accounting. TCA has experience with most of those complex issues which can save time and money in administering a Trust.
TCA will not die or become incapacitated as might happen to a family member, attorney or other individual .
Geography and family dynamics is another reason to name TCA as a Corporate Trustee. An individual may live out of the area and not able to take care of certain Trust duties as TCA could. We have been involved with a number of Trusts where a family member was named Trustee and control over other family members. This situation can evolve into significant family problems. TCA, as a 3rd party Trustee, can help elevate or eliminate many family dynamics problem s.
TCA’s only job is to administer Trusts and related accounts. Our client’s have the important right of choice when it comes to the investment advisor, tax professional, attorney and insurance expert they wish to use to accomplish the purpose of their Trust. Most Corporate Trustee’s require their clients to confirm to the Trustee’s restrictions. Most often, those restrictions do not permit a client to continue to use the financial advisor, tax advisor, attorney or insurance professional they have used and trusted for years.
TCA has other advantages over other corporate Trustee’s because we permit most non-standard and illiquid assets such as residential and commercial real-estate, personal notes, loans and mortgages, pre-IPO stock, private-equity and partnerships to name few.
| Tax-Deferred Plan |
A retirement savings plan (like an IRA, 401(k), pension, profit sharing, or Keogh) that qualifies for special income tax treatment. The contributions made to the plan and subsequent appreciation of the assets are not taxed until they are withdrawn at a later time — ideally, at retirement, when your income and tax rate are lower. |
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| Separate Property |
Generally, all assets you acquire prior to marriage and assets acquired by gift or inheritance during marriage. |
| Separate Trust |
A trust established by one person. A married couple has separate trusts if each spouse has his/her own trust with its own assets. In contrast, see “Common Trust.” |
| Settle an Estate |
The process of handling the final affairs (valuation of assets, payment of debts and taxes, distribution of assets to Beneficiaries) after someone dies. |
| Settlor | See “Grantor.” |
| Special Gifts |
A separate listing of special assets that will go to specific individuals or organizations after your incapacity or death. Also called special bequests. |
| Special Needs Trust |
Allows you to provide for a disabled loved one without interfering with government benefits. |
| Spendthrift Clause |
Protects assets in a trust from a beneficiary’s creditors. |
| Spouse | Husband or wife, or married same-sex couples. |
| Stepped-up Basis |
Assets are given a new basis when transferred by inheritance (through a will or trust) and are re-valued as of the date of the owner’s death. If an asset has appreciated above its basis (what the owner paid for it), the new basis is called a stepped-up basis. A stepped-up basis can save a considerable amount in capital gains tax when an asset is later sold by the new owner. Also see “Basis.” |
| Subchapter S Corporation Stock |
Stock in a corporation which has chosen to be subject to the rules of subchapter S of the Internal Revenue Code. |
| Surviving Spouse |
The spouse who is living after one spouse has died. |
| Survivor’s Trust |
See “A Trust.” |
| Successor Trustee |
Person or institution named in the trust document who will take over should the first trustee die, resign, or otherwise become unable to act. |
| Payable-on-Death Account |
See “Totten Trust.” |
| Per Capita | A way of distributing your estate so that your surviving descendents will share equally, regardless of their generation. |
| Per Stirpes | A way of distributing your estate so that your surviving descendents will receive only what their immediate ancestor would have received if he/she had been living at your death. |
| Personal Property |
Movable property. Includes furniture, automobiles, equipment, cash and stocks. Opposite of real property that is permanent (like land). |
| Personal Representative |
Another name for an executor or administrator. |
| Pour Over Will |
A short will often used with a living trust. It states that any assets left out of your living trust will become part of (pour over into) your living trust upon your death. |
| Power of Attorney |
A legal document giving someone legal authority to sign your name on your behalf in your absence. Ends at incapacity (unless it is a durable power of attorney) or death. |
| Probate | The legal process of validating a will, paying debts, and distributing assets after death. |
| Probate Estate |
The assets that go through probate after you die. Usually these include assets you own in your name and those paid to your estate. Usually does not include assets owned jointly, payable-on-death accounts, insurance and other assets with beneficiary designations. Assets in a trust also do not go through probate. |
| Probate Fees |
Legal, executor, and appraisal fees and court costs when an estate goes through probate. Probate fees are paid from assets in the estate before the assets are fully distributed to the heirs. |
| Qualified Domestic Trust (QDOT) |
Allows a non-citizen spouse to qualify for the marital deduction. |
| Qualified Terminable Interest Property (QTIP) |
A trust that delays estate taxes until your surviving spouse dies so more income will be available to provide for your spouse during his/her lifetime. You can also keep control over who will receive these assets after your spouse dies. |
| Qualifying Subchapter S Trust (QSST) |
Trust that meets certain IRS qualifications and is allowed to own Subchapter S stock. |
| Quitclaim Deed |
Document that allows you to transfer title to real estate. With a quitclaim deed, the person transferring the title makes no guarantees, but transfers all his/her interest in the property. |
| Real Property |
Land and property that is permanently attached to land (like a building or a house). |
| Recorded Deed |
A deed that has been filed with the county land records. This creates a public record of all changes in ownership of property in the state. |
| Revocable Trust |
A trust in which the person setting it up retains the power to change (revoke) or cancel the trust during his/her lifetime. Opposite of irrevocable trust. |
| Required Beginning Date (RBD) |
The date you must begin taking required minimum distributions from your tax-deferred plans. Usually, it is April 1 of the calendar year following the calendar year in which you turn age 70 1/2. If your money is in a company-sponsored plan, you may be able to delay your RBD beyond this date if you continue working (providing you are not a 5% or greater owner of the company). |
| Required Minimum Distribution (RMD) |
The amount you are required to withdraw each year from your tax-deferred plan after you reach your Required Beginning Date. This amount is determined by dividing the year-end value of your tax-deferred account by a life expectancy divisor found on a chart provided by the IRS. |
| Payable-on-Death Account |
See “Totten Trust.” |
| Per Capita | A way of distributing your estate so that your surviving descendants will share equally, regardless of their generation. |
| Per Stirpes | A way of distributing your estate so that your surviving descendants will receive only what their immediate ancestor would have received if he/she had been living at your death. |
| Personal Property |
Movable property. Includes furniture, automobiles, equipment, cash and stocks. Opposite of real property that is permanent (like land). |
| Personal Representative |
Another name for an executor or administrator. |
| Pour Over Will |
A short will often used with a living trust. It states that any assets left out of your living trust will become part of (pour over into) your living trust upon your death. |
| Power of Attorney |
A legal document giving someone legal authority to sign your name on your behalf in your absence. Ends at incapacity (unless it is a durable power of attorney) or death. |
| Probate | The legal process of validating a will, paying debts, and distributing assets after death. |
| Probate Estate |
The assets that go through probate after you die. Usually these include assets you own in your name and those paid to your estate. Usually does not include assets owned jointly, payable-on-death accounts, insurance and other assets with beneficiary designations. Assets in a trust also do not go through probate. |
| Probate Fees |
Legal, executor, and appraisal fees and court costs when an estate goes through probate. Probate fees are paid from assets in the estate before the assets are fully distributed to the heirs. |
| Qualified Domestic Trust (QDOT) |
Allows a non-citizen spouse to qualify for the marital deduction. |
| Qualified Terminable Interest Property (QTIP) |
A trust that delays estate taxes until your surviving spouse dies so more income will be available to provide for your spouse during his/her lifetime. You can also keep control over who will receive these assets after your spouse dies. |
| Qualifying Subchapter S Trust (QSST) |
Trust that meets certain IRS qualifications and is allowed to own Subchapter S stock. |
| Quitclaim Deed |
Document that allows you to transfer title to real estate. With a quitclaim deed, the person transferring the title makes no guarantees, but transfers all his/her interest in the property. |
| Real Property |
Land and property that is permanently attached to land (like a building or a house). |
| Recorded Deed |
A deed that has been filed with the county land records. This creates a public record of all changes in ownership of property in the state. |
| Revocable Trust |
A trust in which the person setting it up retains the power to change (revoke) or cancel the trust during his/her lifetime. Opposite of irrevocable trust. |
| Required Beginning Date (RBD) |
The date you must begin taking required minimum distributions from your tax-deferred plans. Usually, it is April 1 of the calendar year following the calendar year in which you turn age 70 1/2. If your money is in a company-sponsored plan, you may be able to delay your RBD beyond this date if you continue working (providing you are not a 5% or greater owner of the company). |
| Required Minimum Distribution (RMD) |
The amount you are required to withdraw each year from your tax-deferred plan after you reach your Required Beginning Date. This amount is determined by dividing the year-end value of your tax-deferred account by a life expectancy divisor found on a chart provided by the IRS. |
| Health Care Proxy |
See “Durable Power of Attorney for Health Care.” |
| Heir | One who is entitled by law to receive part of your estate. |
| Holographic Will |
A handwritten will. |
| Homestead Exemption |
Portion of your residence (dwelling and surrounding land) that cannot be sold to satisfy a creditor’s claim while you are living. |
| Incapacitated/ Incompetent |
Unable to manage one’s own affairs, either temporarily or permanently. Lack of legal power. |
| Independent Administration |
A form of probate available in many states. Intended to simplify the probate process by requiring fewer court appearances and less court supervision. |
| Inheritance | The assets received from someone who has died. |
| Inter vivos | Latin term that means “between the living.” An inter vivos trust is created while you are living instead of after you die. A revocable living trust is an inter vivos trust. |
| Irrevocable Trust |
A trust that cannot be changed (revoked) or cancelled once it is set up. Opposite of revocable trust. |
| Intestate | Without a will. |
| Joint Ownership |
A form of ownership in which two or more persons own the same asset together. Types of joint ownership include joint tenants with right of survivorship, tenants in common, and tenants by the entirety. |
| Joint Tenants with Right of Survivorship |
A form of joint ownership in which the deceased owner’s share automatically and immediately transfers to the surviving joint tenant(s). |
| Land Trust | Often used for privacy. Title is transferred to a corporate trustee or corporation, but you keep control over how the property is managed. Because the title is in the name of the corporate trustee or corporation, no one knows the property belongs to you. In all financial transactions and dealings, your personal name never comes up. Also called a title holding trust. |
| Liquid Assets |
Cash and other assets (like stocks) that can easily be converted into cash. |
| “Living Probate” |
The court-supervised process of managing the assets of one who is incapacitated. |
| Living Trust |
A written legal document that creates an entity to which you transfer ownership of your assets. Contains your instructions for managing your assets during your lifetime and for their distribution upon your incapacity or death. Avoids probate at death and court control of assets at incapacity. Also called a revocable inter vivos trust. A trust created during one’s lifetime. |
| Living Will |
A written document that states you do not wish to be kept alive by artificial means when the illness or injury is terminal. |
| Marital Deduction |
A deduction on the federal estate tax return that lets the first spouse to die leave an unlimited amount of assets to the surviving spouse free of estate taxes. However, if no other tax planning is used, and the surviving spouse’s estate is more than the amount of the federal estate tax exemption in effect at the time of his/her death, estate taxes will be due at that time. |
| Marital Trust |
See “A Trust.” |
| Medicaid | A federally-funded health care program for the poor and minor children. |
| Medicare | A federally-funded health care program, primarily for Americans over age 65 who are covered by Social Security or Railroad Retirement benefits. |
| Minor | One who is under the legal age for an adult, which varies by state (usually age 18 or 21). |
| Net Estate | The value of an estate after all debts have been paid. (Federal estate taxes are based on the net value of an estate.) |
| Net Value | The current market value of an asset less any loan or debt. |