You spend your lifetime working to ensure your family’s well being. You want to do all you can to protect the future of those you care about. A trust puts you in control of your future as well as the future of those who depend on you most. Nothing else does more to ensure the continued management of your assets according to guidelines you specify. A trust can also create important tax advantages that can help preserve the assets you’ve worked hard to build.
Since being granted trust powers in 1921, The First National Bank has managed assets for families like yours. We take pride in our tradition of personal attention combined with the most extensive array of fiduciary services available including:
Your trust is a legal arrangement in which you transfer property to a trustee for the benefit of one or more beneficiaries. When you name The First National Bank as your trustee, co-trustee, or successor trustee, you and your beneficiaries enjoy the collective efforts of a team of specialists. Working on your behalf will be professionals in taxation, economic and investment research, investment management, securities trading, real estate, and other areas.
Our goal is to help preserve and grow your estate’s wealth. Our state-of-the-art operations system utilizes the best technology available to track account income, expense, and asset changes. We provide professional reports on a timely basis to meet your individual needs.
A trust you create which operates during your lifetime is known as a living trust. With a living trust, you specify precisely how your assets are to be managed throughout your life, for yourself or for the benefit of others you designate.
A living trust is a very personal, very tailored legal agreement that you design with your attorney and The First National Bank. It gives you the resources to manage your assets to their potential and relieves you of any financial duties you might consider burdensome.
A revocable living trust guarantees that, should you become physically or mentally incapacitated, your bills will be paid, your affairs managed, and your investments monitored, thereby avoiding the impersonal intervention and expense of a court-appointed conservator.
If you wish to provide sound management for your assets, but desire the freedom to pursue other interests, consider naming The First National Bank as your trustee. We will administer your assets for your benefit during your lifetime and for the benefit of your heirs thereafter.
Your will can be used to create a testamentary trust to accomplish the long-term fulfillment of your wishes. It can be designed to realize any vision you have of the future:
- Continuing Care – You could devise a trust to provide for the ongoing needs of your spouse and family or to furnish a lasting legacy to a favored charity.
- Meeting Major Expenses – If you direct, trust funds could be used to meet major or unexpected expenses for your beneficiaries, such as a child’s marriage or a grandchild’s education.
- Preserving Your Estate – A trust could be drafted to reduce the tax burden to your estate. Terms can be written to minimize overall estate tax liabilities by dividing assets into separate trusts.
With a testamentary trust, you state your intentions according to your own discretion and circumstances. In a sense, it is a means of extending yourself into the future to provide financial comfort to those who are important to you.
Charitable Trusts and Private Foundations
These vehicles can help you realize your philanthropic goals and can be utilized while you are still living or become fully funded upon your death.
- Charitable Remainder Trust - make a gift while receiving income for life or a specified period. At the end of the trust's term, the assets will pass to one or more charities.
- Charitable Lead Trust - pay income to a charity you choose for a specified period, with the remainder of the trust's assets distributed to individual beneficiaries at the end of the trust's term.
- Family Foundation - Create a charitable legacy, exercise greater control over your contributions and receive income, gift and estate tax benefits.
Appointment of The First National Bank as executor or personal representative assures that your instructions will be carried out and your beneficiaries will receive personal attention throughout the administration of your estate.
As executor or personal representative, responsibilities include:
- Safekeeping of your assets
- Paying debts, expenses, and taxes
- Preparation of the estate tax return
- Impartial guidance – objectivity helps to avoid potential conflicts
- Distribute your property according to your wishes
A “guardian of the estate” is appointed by the probate court after legal counsel files the appropriate petition. There are a number of situations that can result in the final decision to appoint a guardian, such as:
- A minor inheriting significant assets. A small child whose parents die in a common accident cannot manage assets he or she has inherited. In this case, a legally appointed guardian, under close supervision by the court, is responsible for ongoing financial management.
- A child receiving proceeds resulting from a personal injury lawsuit or the wrongful death of a parent or other family member.
- Appointment in the case of an adult who is adjudged physically or emotionally unable to handle financial affairs.
A guardian assumes a number of important responsibilities. Prompt collection and careful investment of assets belonging to the estate must be carried out in accordance with rules contained in the probate laws of the state. These responsibilities include:
- Prudent management of estate assets
- Preparation and filing of annual state and federal income tax returns
- Periodic reporting to the probate court
A service of the Trust Department that provides safekeeping for a customer’s securities under written agreement and also provides for the bank to collect and pay out income and to buy, sell, receive, and deliver securities when ordered to do so by the customer. An annual report of this activity is given to the customer for use in preparing his tax return.
The First National Bank has long been a leader in the agricultural community. With a staff experienced in ag lending, their knowledge is utilized in the trust area to provide farm management services.
Individual Retirement Accounts
These are tax-deferred retirement vehicles that may be established through trust or custodial accounts and may be tax-deductible. Maximize the benefits of your retirement savings or lump-sum distribution and provide optimal protection from current taxes while utilizing diversified investment opportunities.
Student Loans, Grants and Scholarships
The Ella G. McKee Foundation Student Loan - We are still taking applications!
-application for Fayette County Students only
Grants are made to organizations exempt from Federal Income Tax under Section 501(c)(3) of the Internal Revenue Code. There is no special form for submitting requests. Requests for funding must be made in writing and should include: (A) a cover page giving the name, address and phone number of the requesting organization and purpose of the organization, (B) a concise description of the project for which funds are requested and the amount of the request, (C) name of contact person for this organization, and (D) copy of your organization’s 501(c)(3) tax exempt status letter from the IRS. Requests should be mailed to: The First National Bank-Vandalia, c/o Trust Department, P.O. Box 40, Vandalia, IL 62471.
Old Capitol Foundation Scholarships:
Charles A. Evans Scholarship Fund - application
Douglas R. Rames Memorial Character Award - application
Edward Mills Scholarship - application
Golda W. Shulman Scholarship Fund - application
Hazel Simma-Kelly Scholarship Fund - application (Not available for the 2016-17 school year)
Jennifer Rogers Knebel Scholarship - application
John and Sherry Burnside Scholarship - application
Old Capitol Foundation Scholarship - application (Deadline has been extended to April 15th for the 2016-17 school year.)
Patoka American Legion Scholarship - application
Tamara Gail Vosholler Memorial Scholarship - application
Vandalia HS Alumni Scholarship - application
VFW Post 3862 Scholarship Fund - application
Additional Scholarship Information for College Students:
For more information, please call the Trust Department.
FNB's COMMITMENT TO YOU
The professionals in the Trust Department of The First National Bank are prepared to work closely with your own legal and accounting advisors to address your specific financial goals. Through our expanded financial services, we have the expertise and the resources to provide solutions to the challenges you and your family face in today’s dynamic environment. We would be happy to talk with you about your individual needs. Of course, all information is kept highly confidential.
For more information or to speak with a trust representative, please contact us at:
The First National Bank Trust Department - Located at the Financial Center at 311 Banker Blvd. in Vandalia, IL
24-Hour Trust Client Access to Account Information.
Please contact Liz or Michelle at (618) 283-9860 for details on access.