BANFIN

• Nature of Trust

  Creator of Trust

  -Trustor

  -Grantor

  -Donor

  -Testator 

  Trustee Beneficiary
• Bank's Trust Department Legal Estate Administration, Guardianship, and Administering Trust

  This division would handle matters of legal import, manage and administer properties under trust, act as executor of last wills and testaments, or administer estates.
• Agency Services

  This division handles agency services such as that of safekeeping, custodianship and escrows.
• Accounting Division

  This division takes care of recording and analyzing all trust transaction.
• Asset Management Division

  This division manages outstanding and foreclosed accounts of both institutional and individual clients.
• Fund Management or Investment Division.

  This division is in charge of coming up with products and services offered to its diverse clientele.
• Trust Activities of Banks To act as trustee for a corporation's assets under mortgages/bond issue.

  
  

  In a corporate mortgage, the trustee is charged with the responsibility of protecting the mortgagees or bondholders' interest.
• To act as transfer agent or registrar of stocks and bonds.

  The transfer of ownership of stocks and bonds necessitates an accurate record to protect the interest of the owners.
• To act as guardian of a minor's interest.

  When the property of a minor, through a will or through court order, is left in the hands of bank trustees, it sees to it that such interest are safeguarded and are properly managed.
• To act as executor of last wills and testaments.

  
  

  When the trustor leaves a will, banks assist in the execution of the last will and testaments.
• To act as administrator of estates.

  Sometimes, the owner of the property or the court appoint a trustee to take over the management and administration of his estate
• To act as depository for escrow deposits, valuables, or other securities.

  In some transactions, one party may require the other party to deposit in escrow property or cash to insure the performance of an obligation.
• To act as assignee, receiver, or depository.

  In case of corporation or individual businesses which are on the brink of bankruptcy or are being mismanaged, it may be necessary for a third party to take over management to insure the interest of the creditors.
• To act as an advisor.

  
  

  The trust department provides expert advice to institutions and individuals in investment decisions
• Kind of Trust Individual Trust.

  Are those which would pertain to trust functions where the welfare and interest of the individual is safeguarded.
• Voluntary or Living Trust.

  Under this set-up, the owner transfers the title of the property to a trustee and gives instructions on how to dispose of the income or how to reinvest the funds.
• Testamentary Trust

  
  

  When an individual appoints a trustee through a will.
• Insurance Trust.

  This services is rendered whenever the trust department of the bank is appointed as trustee under insurance trust agreements.
• Employee Benefit Trust.

  This involves the creation and design of a plan to provide economic security and benefits to employees

  Example:

  • Fixed Benefit le Benefits

  • Profit-sharing Fund

  • Stock Bonus Fund
• Investment Management Services.

  Banks manage investment portfolios. It allows clients' assets to grow in a disciplined manner according to their goals, time frame and comfort level.
• Collateral Trust.

  In this case, the title of the collaterals placed behind a mortgage is transferred to a trustee for the interest of the bondholders.
• Sinking Fund Trust.

  The trustee is usually assigned to enforce the provisions for a sinking fund connected with bond financing.