Trust Services

 

Wyoming Bank and Trust has developed into one of the premier Wyoming based bank’s offering personal and corporate trust services.  With the passage of legislation in the State of Wyoming that allows for the formation of Dynasty Trusts and Asset Protection Trusts (“Qualified Spendthrift Trusts”), Wyoming Bank & Trust has developed an expertise in managing these types of specialized personal trusts.

Wyoming Bank & Trust has served as the corporate trustee for billions in public debt issues.  In addition, Wyoming Bank & Trust serves as the custodian trustee for numerous insurance companies throughout the United States.

Please take this opportunity to review our web site for more information on the types of trust and investment services offered by us and if you are an estate planning professional for references to Wyoming legislation pertaining to trusts.

Trust Customers who have enrolled in Wyoming Bank & Trust Online Trust (PAL) may click the button below to access your accounts.

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Trust Customers who have investments managed by Colorado State Bank & Trust (BOK) may access investment detail by clicking the link below. https://clientpoint.fisglobal.com/tdcb/main/UserLogon?bankNumber=RK&subProduct

 

To contact our Trust Department please call 307-632-7733 or e-mail at trust@wyomingbank.com.

 

 

Wyoming Bank & Trust-Trust Department

The Trust Department currently has over $250,000,000 of assets under management and services an additional $120,000,000 in corporate trusts.   The department uses SunGard for its trust accounting provider.  Bank of New York serves as the department’s primary custodian along with Fidelity for all mutual funds.

The departments primary regulators are the Federal Reserve Bank and the State of Wyoming with both regulators conducting regularly scheduled exams of the department.   In addition, the department has an annual audit performed by an outside accounting firm.  The department maintains errors and omissions insurance.

The department maintains investment relationships with Federated Investors, Morgan Stanley, Goldman Sachs, Morgan Keegan, BMO Capital Markets and Stifel Nicholaus.

 

About our Trust Staff

Michael E. Bohl is the Executive Vice President and Trust Officer of Wyoming Bank & Trust where he is in charge of the administration of personal and corporate trusts.  Mr. Bohl has been a trust officer since 1981.  He received his B.S degree in business management from the University of Wyoming and his J.D. degree from the University of Wyoming College of Law.  He is past President of the Laramie County Bar Association and is a member of the Colorado State Bar, Wyoming State Bar, Laramie County Bar Association and the Southeast Wyoming Estate Planning Council.

Kathy Hartwig is a Vice President and Trust Officer of Wyoming Bank & Trust. Ms. Hartwig began her banking career in 1979 and has had experience in numerous areas of banking.  She came to the trust department in 1997.  Kathy has attended the Canon Trust School and is on the Board of the Southeast Wyoming Estate Planning Counsel.

Dershie R. Barber is a Vice President and Trust Officer of Wyoming Bank & Trust. Ms. Barber began her career in trust service in 1990.  Her experience includes personal trust, foundation administration, estate planning, investment and custody relationships and business development.  Dershie earned her bachelor’s degree in business administration from the University of Wyoming.  She is a graduate of Cannon Trust School through the Cannon Financial Institute.  Dershie is a board member of the Southeast Wyoming Estate Planning Council, a member of the Wyoming Estate Planning Council, the Chamber of Commerce and a Leadership Cheyenne Graduate.

Qualified Spendthrift Trusts

Effective July 1, 2007, the State of Wyoming has enacted changes to its existing Uniform Trust Code which allows for self settled asset protection trusts which are referred to as a “Qualified Spendthrift Trust”. This type of trust has also been referred to as “self settled” or “asset protection” trust.

While the Settlor of a Qualified Spendthrift Trust cannot be the trustee, the Settlor may retain the powers to:

1. Veto any distribution from the Qualified Spendthrift Trust;

2. Exercise a testamentary or inter vivos general or limited power of appointment over the assets of the Qualified Spendthrift Trust;

3. Add or remove a trustee, trust protector or trust advisor; and

4. Serve as Investment Advisor to the Qualified Spendthrift Trust.

The Wyoming legislation contains provisions that permit the transfer of trust assets from a similar type of trust previously created and funded in another jurisdiction to a Wyoming Qualified Spendthrift Trust with the creditor protection aspects of the Wyoming Statutes relating back to the date when the trust was originally funded in the other jurisdiction.

The advantages of this type of trust is that the Settlor can shield certain assets from potential creditors while still getting the benefits of the assets such as income or principal distributions from the trust for the Settlor’s benefit.  Anyone considering this type of trust must consider the type of assets that they will be funding the trust with and can not make themselves totally insolvent by transferring all of their assets into this type of trust.

Wyoming Bank and Trust has the experience of managing this type of trust and has worked with Settlor’s and their advisors in developing the same.  We are willing to work with trust advisors selected for either making the investment of the trust assets and/or recommend distributions from the trust.  We are also willing to work with trust protectors selected to make decisions as allowed under the Wyoming Uniform Trust Code.

The statutes governing the Qualified Spendthrift Trust can be found in the Wyoming Uniform Trust Code WS S 4-10-101 et seq. The Wyoming Statutes can be found at the Wyoming legislative website- legisweb.state.wy.us.

Generation Skipping/Dynasty Trusts

A Generation Skipping Trust is an estate planning technique used to transfer property to second-generation beneficiaries, usually grandchildren, without the trust assets becoming part of the children’s estate.  The benefits of this type of trust are:

  • The trust can grow much more since it is not subject to estate and inheritance taxes at each generational level.
  • The trust assets are protected from spendthrifts, creditor claims or claims due to divorce of beneficiaries in succeeding generations.
  • Trust assets are being managed by experienced professionals with the aid of any named trust advisors or trust protectors.

Wyoming is one of the few states that allows for the use of Dynasty Trusts in the estate planning.  The Rule Against Perpetuities has been extended to 1000 years in the State of Wyoming WS S 34-1-139 (b). The use of a Dynasty Trust along with a Generation Skipping Trust can extend the benefits of the Generation Skipping Trust for many more generations.  This will also allow the Trust to even grow more, since a Wyoming based trust IS NOT subject to state income taxes, since the State of Wyoming does not have a state income tax.

Revocable Living Trust

The Revocable Living Trust allows you to set up a trust that you are in complete control of during your lifetime and while you are still competent. You may add Trust Advisors per WS S 4-10-712 or Trust Protectors per WS S 4-10-710 to assist us as the corporate trustee in the investments of the assets or for distributions during times of incompetency or for the benefit of others that the trust provides benefits to such as other family members, a pet (Wyoming law under WS S 4-10-409 permits the establishment of a trust for a pet) or a charity.

The benefits of a Revocable Living Trust being held by us as trustee include:

  • Confidentiality
  • Continuity of management in the event of illness, incompetency or death.
  • Avoidance of probate and direct distributions to beneficiaries.
  • Professional asset management and safekeeping of assets with collection and disbursement of income.
  • Accurate record keeping and tax ledgers.

You may also wish to name us as the Successor Trustee of your Revocable Living Trust, whereby we will take over as trustee upon your death or incapacity if you are surriving as your own trustee during your lifetime.

Testamentary Trusts

A Testamentary Trust is established by the terms of a Will and begins to function only after death and probate of the Will.  This type of trust allows the Settlor to control the assets up until the time of death and than passes the management to a trustee after death.

The benefits of having us serve as a trustee of a testamentary trust include:

  • Impartial third party management of the assets and distribution thereof to beneficiaries.
  • Accurate recordkeeping and tax ledgers.
  • Professionals that are knowledgeable on the administration of this type of trust.
  • Relieves family members of the burden and conflicts that can arise in managing this type of trust.

Estate Settlement

We can act in the capacity of Personal Representative or Executor of a Will.  In this capacity, we would be responsible for the settlement of the estate per the terms of the Will and the laws of the State of Wyoming. If a Will does not exist, than we would probate and settle the estate according to the intestacy laws of the State of Wyoming. (See WS S 2-4-101 thru 2-4-108 on intestacy.)

Some of the duties that are required for the Personal Representative include the gathering of the assets, payment of debts, contesting improper claims, collecting sums owed to the estate, managing the assets during administration, sale of assets, payment of taxes and the payment of estate expenses.( See Wyoming Probate Code at WS S 2-1-101 et seq.)

The benefits of having us serve in this function include having experienced professionals that are familiar with the process and an impartial to the beneficiaries of the estate.

Insurance Trusts

An Irrevocable Life Insurance Trust (ILIT) is set up to hold life insurance policies outside of an estate.  This type of trust is able to provide liquidity to an estate that may include a ranch, farm or small business or it may be used to provide the required funds to beneficiaries to pay estate taxes or partners to pay of a deceased partners’ estate. An ILIT type of trust has also been used in connection with Dynasty Trusts to provide for future generations.

Conservator/Conservatorship Trusts

A Conservator is appointed to manage the assets for an incompetent or incapacitated person. The Conservator has full investment powers and manages the assets according to the needs of the ward subject to supervision of the Court.  (See WS S 3-3-101 thru 3-3-1106).  The Conservator is responsible for an annual accounting to the Court having jurisdiction.

The benefits of having a professional trustee serve as Conservator include:

  • Accurate accounting to the Court.
  • Impartial party handling affairs of Ward.
  • Family members or friends are not tempted to mismanage assets.
  • Professional management, recordkeeping and tax reporting.

A Conservatorship Trust can be set up by a Conservator under WS S 3-3-607 (vi). Under this statutory section, the trust has to be revocable, needs a Wyoming corporate Trustee and can only be created by an order of a court having jurisdiction over the Conservatorship.  The advantages of using this type of trust include the extension of time that the assets can be managed for the benefit of the Ward for the Ward’s benefit.  The use of this type of trust is primarily for minor’s after they turn 18 and there is a large sum of money involved in their Conservatorship. The creation of a Conservatorship Trust can assist in providing for this young adult in a more structured and defined way for some time after they become a legal adult.

Custody Accounts

Our custody services can be used for a variety of reasons by individual, public entities or both profit and non-profit institutions.  This kind of account is designed to hold securities such as stock or bonds or other assets such as mutual funds and money market investments.

Institutions have used this type of account for money management purposes or to hold securities that are being managed by outside managers.  Public entities receive the highest GASB ratings when their securities are held through a banking institution. Institutions such as insurance companies use this type of service to hold securities being pledged to the Wyoming Insurance Commissioner.

Individuals use this type of service for the benefit of having all of their assets being held at one location. This type of service provides for accurate accounting of income and the redemption of securities.  Individuals who have named us as the successor trustee of their Revocable Living Trust use this type of service in order to provide them with the peace of mind that their liquid assets are readily available to their successor trustee in the event we need to began acting in an emergency situation.

Wyoming Bank & Trust uses The Bank of New York as its primary custodian for DTC eligible securities and US Treasury and Agency issues.  The Bank of New York is recognized as the premier custodian for these types of securities.  Fidelity Investor Services is used to custodian all mutual funds.

Corporate Trusts

Wyoming Bank & Trust has served as either the Trustee, Paying Agent, Registrar or Escrow Agent on Billionsof dollars of public entity debt financings throughout the State of Wyoming.  The financings have included:

  • General Obligation Bonds
  • Revenue Bonds-water, sewer, hospital, lease revenue
  • Special Improvement District Bonds
  • Capital Facilities Tax issues
  • Lease financings
  • Tax Anticipation Notes
  • Refunding Bonds & Refunding Escrows
  • Industrial Revenue Bonds

The issuers have included counties, cities, towns, schools, hospitals and colleges, some of which are outlined below:

  • States- State of Wyoming
  • Counties- Albany, Carbon, Goshen, Laramie, Park, Platte,  Sheridan, Teton
  • Cities- Cheyenne, Cody,  Laramie, Sheridan
  • Towns-Burns, Greybull, Jackson, Kaycee, Lyman, Pine Bluffs, Thermopolis, Torrington
  • Schools-Converse #2, Fremont #22, Laramie #1 &#2, Platte #1, Teton #1,  Washakie #1, Weston #1 & #7
  • Colleges- Central Wyoming Community College, Laramie County  Community College, Northwest Community College, Northern Wyoming Community College, Western Wyoming Community College
  • Universities- University of Wyoming
  • Hospitals-Hot Springs County Hospital, Johnson County Hospital, Platte County Hospital,  Memorial Hospital of Sheridan County, Washakie County Hospital, West Park Hospital
  • Others- Buffalo Bill Museum, Northwest Improvement District, Platte County Fire District, Salt Creek Water District

Wyoming Bank & Trust is very experienced at maintaining and investing Project Funds and Reserve Funds that may be associated with a public debt financing.  Also, we are very familiar with the requirements necessary to perform annual disclosures through the EMMA system and record keeping requirements to perform arbitrage rebate calculations.

1031 Exchanges

Wyoming Bank & Trust offers the service of serving as a Qualified Intermediaryfor IRC 1031 Exchanges.  Wyoming Bank & Trust has retained the services of Lance Harmon, an attorney with the firm of Bailey, Stock & Harmon PC, to review all purchase and sale contracts for the required assignability language.  Also, Mr. Harmon will prepare and review the various documents necessary to facilitate the 1031 exchange.  Mr. Harmon’s fee for this service will be included in the exchange fee.

When you work with Wyoming Bank & Trust, it will benefit all of the professionals involved in the real estate transaction.  Also, the money derived from the sale of the Relinquished property while awaiting the purchase of the Replacement property is invested in a safe AAA rated money fund.  Any funds that monies are invested in are not FDIC insured.

Wyoming Bank & Trust prides itself on satisfying the needs of all parties by coordinating with other professionals and providing accurate documentation on the transaction.

What is a Trust?

 A trust is a legal entity that holds property through a Trustee designated by the Grantor for the benefit of the Beneficiaries.  The three key components of a trust are the Grantor, the Beneficiary and the Trustee.

The Grantor is the person (s) that sets up and usually funds the trust and also decides when and by whom the assets will be used. The Grantor can also place limits on how the property can be used.

The Trustee is the party that actually has legal title to the assets and who manages and administers the assets.  The Trustee can be an individual or a corporate trustee like Wyoming Bank & Trust.  For some trusts the Grantor may also be the Trustee, but upon death or incapacity the successor trustee appointed in the trust document will take control.

The Beneficiaries are the individuals, charities, business or other entities that the Grantor chooses to benefit from the trust.  The rights of the Beneficiaries can be restricted in order to protect the trust assets from the creditors of Beneficiaries through the use of Spendthrift clauses in the trust document. The Grantor of a trust can also be the Beneficiary.

The main advantages of using a trust is that they provide a more economical way of administering an individual’s estate while they are alive and when they pass on.  The trust can also provide more confidentiality to the administration of the estate.  The use of other tools such as Wills require public disclosure through the probate process.

The advantage of having a corporate trustee, such as Wyoming Bank & Trust, be part of the trust administration team is that the parties to the trust have a responsible party that is a professional at administering trusts.  Wyoming Bank & Trust’s trust department is audited on a regular basis by external auditors, the State of Wyoming Department of Banking and the FDIC.

 

Articles related to Trusts

This section is a reference area with related with posed articles related to trusts and web-site links to materials related to Wyoming Trust law.