Our Paducah Bank experts can help you with a wide range of trust and estate solutions.
Settling Your Estate
Take steps now to ensure your estate settlement will be handled with skill and compassion.
Personal and Other Trust
Establish a Trust to minimize taxes and reach your financial and philanthropic goals.
Insurance for Estate Planning
Protect your family’s financial future with insurance strategies tailored to your circumstances.
Special Needs Trust
Create a Trust to care for a family member, or draft a disability plan to prepare for your own care.
Guardianship for Minors
Serve as a court-appointed guardian for a minor to manage funds awarded to minor until minor reaches age 18.
Develop a tax-efficient strategy to support the causes that are important to you.
Settling Your Estate
- When you choose Paducah Bank to be Executor of your Will, you can take comfort in knowing that your wishes will be handled with compassion and expertise.
- As executor, the first thing Paducah Bank will do upon your death is to make sure your Will is officially filed with the Probate Court. An executor bears the responsibility of carrying out the instructions contained in your Will, and for taking all other steps necessary to settle your estate. Within one or two years, as a rule, your executor must gather together all the property you own; determine the date of death values; calculate what you owe and pay all debts; and distribute what remains to your family or to others as you direct.
- Naming an inexperienced executor might be burdensome for that individual, and could negatively affect the handling of your estate. The Paducah Bank and Trust Company is well-qualified to serve as an executor. We are always available, financially responsible, experienced, and impartial. We can hire necessary experts, use group judgment and understand the personal considerations often needed in settling an estate. When you name Paducah Bank as your executor, you name experience.
- After an estate is settled, your Will may direct that the estate residue continues in Trust for a spouse, child, or other beneficiary. While you may change the terms of your Will or codicil during your lifetime, it becomes irrevocable upon your death. It is, therefore, critical to choose the right trustee, as a testamentary trust might continue for decades.
- The trustee may be an individual or a company, such as Paducah Bank. We usually recommend a combination of the two, which creates the best coupling of a personally knowledgeable individual with the proven expertise of a trust company. As trustee, Paducah Bank provides professional investment management, experienced trust administration, and excellent reporting.
- In a word, we assure continuity to give you and your family the peace of mind that comes with our professional, yet personalized trust management.
Personal and Other Trusts
Trusts can be an indispensable tool for crafting a sound estate plan. Depending on your specific needs and objectives, our trust advisors can help you create personal trusts and other trusts alongside your legal and tax advisors. These trusts preserve your wealth to support future generations, fulfill your philanthropic goals and minimize tax impacts.
A trust for every need
- A Trust Under Will establishes beneficiary trusts upon your death so you control the amount and timing of distributions.
- A Living Trust helps you avoid probate and protect your privacy. Terms of the trust are detailed in a Trust Agreement that defines how you want your finances managed during your lifetime and following your death.
- A Wealth Protection Trust helps minimize the impact of estate taxes. Wealth Protection Trusts include Marital, Life Insurance and Qualified Domestic Trusts.
- A Charitable Trust fulfills your philanthropic goal while providing you with significant tax benefits.
Insurance for Estate Planning
Dream big, rest easy
Successful financial estate planning requires a lot of imagination. You have to envision a range of scenarios to make sure you are prepared for the day your estate must work on your behalf. At the same time, you want to concentrate on living well today. The good news is the right insurance coverage lets you imagine greater goals for your estate. You can enjoy your retirement while knowing you will provide for the people you leave behind.
Special Needs Trust
Trusts for family members with special needs
If you have a family member with special needs, consider a Special Needs Trust.
A Special Needs Trust lets you save and invest money for someone who requires long-term or lifetime care. It ensures that your child or loved one has full access to any property intended to be held for his or her benefit. It can also ensure that beneficiaries continue to have access to essential government benefits, while providing them with a steady stream of income to pay for their care and other needs.
Trusts in case of future disability
You should also consider what would happen if you became incapacitated. Who would manage your assets and make healthcare decisions for you? Unless you plan ahead, the answer is typically a guardian or conservator appointed by a state court.
A long-term illness or injury can happen at any time, wreaking havoc on even the soundest financial plan. You can establish a sound disability plan that incorporates healthcare provisions such as a living will and durable power of attorney, and living trusts such as a standby or self-trusted trust.
Guardianship For Minors
Sadly, family misfortune such as the death of both parents can leave minors on their own. In these occasions, a Guardianship for Minors can provide living expenses for the minor and a stable nest egg once the age of majority (18 in most U.S. states) is reached.
- Because legal title to the funds cannot be in the name of the minor, the local court of jurisdiction will appoint a guardian of the property such as The Paducah Bank and Trust Company. As guardian, Paducah Bank will ensure that all appropriate bills of the minor will be paid (usually subject to court approval); funds will be invested; tax returns filed and taxes paid; reports rendered monthly; and trust officers available to the family to help with financial questions.
- Upon reaching the age of majority, the minor’s funds will be fully accounted for, and The Paducah Bank and Trust Company will work closely with the client to assure fiscal continuity.
Philanthropy is often an important aspect of wealth planning. Your Paducah Bank advisor can help you develop and implement strategies that take advantage of tax benefits while supporting the causes you care about.
If philanthropy is a value you wish to pass on to future generations, we can also work with you to educate and involve your family in your charitable endeavors.
By gifting highly appreciated assets to a qualified charitable remainder trust, you have the opportunity to reduce your tax burden, while providing the charity with a significant benefit upon your death.
Here’s how it works: Contribute your highly-appreciated assets to a Charitable Remainder Trust (“CRT”), and name the charity as the ultimate beneficiary. During your lifetime, or for a stated period of time, income produced by the trust is for your benefit. However, upon your death, ownership of principal transfers to the qualified charity.
No estate or gift tax is paid on the ownership transfer, reducing the tax burden on your estate and enabling a larger charitable contribution in your name. In addition, you can receive a current income tax deduction on the actuarial value of the CRT at the date the assets are transferred to the trustee. The deduction may be carried forward up to five years if you are not in a position to fully utilize the deduction in the year of creation.
Paducah Bank can help you and your attorney establish a Charitable Remainder Trust, and navigate the various structures including Charitable Remainder Unitrust (CRUT) and a Charitable Remainder Annuity Trust (CRAT). We also administer the trust, making sure the proper distributions are paid regularly and assets transfer smoothly upon the trust’s resolution.
The Paducah Bank and Trust Company and its affiliates and the directors, officers, employees and agents of The Paducah Bank and Trust Company and its affiliates (collectively, “Paducah Bank”) are not permitted to give legal or tax advice. While Paducah Bank can assist clients in the areas of estate and financial planning, only an attorney can draft legal documents, provide legal services and give legal advice. Clients of Paducah Bank should consult with their legal and tax advisors prior to entering into any financial transaction or estate plan. Because it cannot provide legal services or give legal advice, Paducah Bank’s services or advice relating to “estate planning” or “wealth transfer planning” are limited to (i) financial planning, multigenerational wealth planning, investment strategy, (ii) management of trust assets, investment management and trust administration, and (iii) working with the client’s legal and tax advisors in the implementation of an estate plan.
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