Trust Services Frequently Asked Questions (FAQs)
Click on a question below to jump down to the answer:
Must I have a trust to use your investment services? back to top
You’re not required to create a trust. If you prefer, you can put us to work on a less formal basis. All it takes is a simple letter of direction, designating us to act as your investment agent. However, many of our clients choose trust arrangements because of the unique advantages they offer.
With a trust you can not only draw on our broad investment capabilities but also arrange to have us perform any number of special services, now or in the future. These personalized services could range from making payments of estimated taxes while you’re traveling abroad to providing full personal financial management in the event you suffer an incapacitating illness. Also, you can name one or more beneficiaries to receive the assets of your trust at your death. These distributions avoid probate. Or, you can have your trust continue beyond your lifetime, serving as a source of continuing income and support for your spouse, a child or others whom you designate.
First, you will need a trust agreement with written instructions drawn up by your attorney. Once this agreement is signed by you (as grantor of the trust) and accepted by BankFinancial (as trustee), we will then collect your assets and deposit them into the trust account. Trusts of this type are often called living trusts to distinguish them from testamentary trusts (those established under the terms of a will). Living trusts created for the purpose of personal asset management are also known as revocable trusts. That’s because the person who creates the trust reserves the right to cancel or revoke it.
Yes. Usually our trust clients keep control in three ways: First, the trust agreement specifies that they may make withdrawals (or additions) at any time. Second, as just mentioned, they reserve the right to cancel the trust. Third, they reserve the right to give us new or different instructions by amending the trust agreement.
Yes, if that is your preference. However, most of our clients look to us for objective, unbiased portfolio expert advice. BankFinancial offer full management of investment account, as well as, self-directed custodial services.
No. Our fees are competitive with those charged by investment advisory firms (for services that may not include custodianship of securities, record keeping and other conveniences) or by mutual funds.
If you think of millions of dollars when you hear the word “trust,” you’re the victim of a widespread misconception. BankFinancial has developed ways to handle even small trusts under $100,000 efficiently. In any case, we don’t think in terms of fixed minimums. Instead we ask ourselves, “Is a trust the best way to meet this person’s financial management needs?” To find out whether a trust would be right for you, schedule an exploratory talk with a trust officer.
How much of a return will I get on my money? back to top
That depends on your goals and objectives—current income, long-term growth to offset inflation, or some balance of the two, and on ever-changing investment conditions. Over roughly the past 85 years, diversified portfolios of good-quality stocks have produced a total annual return (dividends plus growth in principal value) averaging around 9.8%. Bonds have produced somewhat lower returns overall, but they sometimes offer a higher level of current income than stocks.*
As trustee, our goal is to provide reasonably consistent returns over the years. We emphasize careful asset allocation, the selection of quality investments and constant vigilance.
Look for experience first. Look for someone—or a financial organization, such as BankFinancial. You’ll want such experience to provide financial security for you and your family. Your trustee should have financial strength as well as professional investment capabilities. The trustee should participate in the financial markets every day, and trusteeship must be treated as a full-time job. That describes us perfectly.
That’s easy. Our trust and investment pros will be glad to assemble further information for you, analyze your investment requirements, review your investment portfolio and answer your questions.
You may use the search tool
for information on specific products or services. Or you may call our Customer Service Center at 1.800.894.6900
*Past performance is no guarantee of future results.
Not FDIC insured / May lose value / Not financial institution guaranteed / Not a bank deposit / Not insured by any federal government agency.