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Product Description

MonteClare offers a variety of trust solutions to accommodate the various preferences and expectations of its clients.

Living Trusts

Living trusts (also known as a "revocable living trusts") are legal documents created during a person's lifetime in which trustees are given responsibility for managing persons' assets for the benefit of the eventual beneficiaries. 

Testamentary Trusts

Testamentary trusts are trusts that are created through wills and only takes effect after the death of the person who created the will (the testator).  

Asset Protection Trusts

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Dynasty Trusts

Dynasty trusts represent long-term trusts designed to pass wealth from generation to generation while minimizing estate, gift, and generation-skipping transfer (GST) taxes.

Special Needs Trusts

Special Needs Trusts (SNTs) are legal arrangement designed to hold and manage assets for the benefit of persons with a disability, without affecting their eligibility for means-tested government benefits such as Medicaid or Supplemental Security Income (SSI).

What are Special Needs Trusts? SNTs allow trustees to manage funds on behalf of beneficiaries with disabilities in a way that supplements but does not replace public benefits.

Trusts can pay for a wide range of services and goods not covered by government programs, such as: Medical and dental expenses not covered by Medicaid;  Transportation (e.g., a specially equipped van);  Education and training;  Personal care attendants; Vacations, hobbies and entertainment and Assistive technology.

Settlement Trusts

Settlement Trusts represent types of trusts established to receive, manage and protect settlement proceeds, typically from a personal injury, workers’ compensation or disability claim.

Its main goal is to provide structured financial management for an injured or disabled beneficiary—often for life—while preserving eligibility for government benefits like Medicaid and Supplemental Security Income (SSI).

Qualified Deferred Compensation Trusts

Qualified Deferred Compensation Trusts are a legal arrangement used to hold and manage assets set aside to fund qualified deferred compensation plans—such as 401(k)s, pension plans, and profit-sharing plans—that comply with ERISA (Employee Retirement Income Security Act) and IRS tax code requirements, particularly Section 401(a).  

Key Characteristics:

Used with Qualified Plans: These trusts are associated only with plans that meet IRS requirements for favorable tax treatment (e.g., 401(k), defined benefit plans). Separate Legal Entity: Once funds are contributed to the trust, they are no longer assets of the employer and are protected from creditors.

Tax-Deferred Growth: Contributions grow tax-deferred until distributed to employees in retirement or separation from service.

Fiduciary Oversight: Trustees of the trust have fiduciary duties under ERISA to manage the assets prudently and in the best interest of plan participants.  

Non-Qualified Deferred  Compensation Trusts

Non-Qualified Deferred Compensation Trusts  (NQDC) represent an arrangement between employers and employees where a portion of the employee’s compensation is deferred to a future date, usually retirement, without being subject to the same rules and limits as qualified retirement plans like 401(k)s.  

Key Features: 

Not Subject to ERISA Qualification Rules: Unlike 401(k) or pension plans, NQDC plans are not “qualified” under the Internal Revenue Code (IRC) Section 401. As a result, they do not offer the same tax benefits or protections, but they are more flexible in design.

Primarily for Executives and Highly Compensated Employees These plans are often used to supplement retirement income for top-tier employees who are subject to contribution limits in qualified plans.

Tax Treatment: Employees do not pay taxes on deferred compensation until it is actually received. The employer does not deduct the compensation until it is paid. Distributions must follow strict timing rules under IRC Section 409A to avoid immediate taxation and penalties.

Unsecured Promise: Deferred compensation is essentially a promise to pay in the future. It is unfunded and the employee is a general creditor of the company. This means if the company goes bankrupt, the employee may not receive their deferred compensation.

Plan Design Flexibility: Plans can defer: Base salary, Bonuses and Commissions

Payout triggers include: Retirement, set date, death or disability and separation from service.

Rabbi Trusts

Rabbi Trusts represent types of trusts used by employers to hold assets set aside to fund non-qualified deferred compensation (NQDC) plans for employees, especially executives. It provides some assurance to employees that the employer will fulfill its promise to pay deferred compensation—while still preserving favorable tax treatment.

Key Characteristics

Unfunded for Tax Purposes: Although assets are placed in trusts, the IRS considers it "unfunded" because the employee does not have secured access to the funds.

This ensures that the employee does not owe taxes until they actually receive the deferred payments.

Assets Remain Subject to Employer’s Creditors: Trusts are irrevocable, meaning the employer can’t take the funds back for other uses. However, if the employer declares bankruptcy, assets in the trusst are available to satisfy creditors.

This is a key reason it qualifies as "unfunded" under IRS rules (especially Revenue Procedure 92-64).

Used with NQDC Plans: Rabbi trusts are commonly used to provide a level of security and confidence to executives participating in non-qualified deferred compensation plans.

No Early Taxation (Section 409A Compliant): As long as trusts doesn’t allow the employee constructive receipt or secure access to the assets, it complies with IRC Section 409A and avoids early taxation.   

Why are they called Rabbi Trusts? The first such trust was established for a rabbi in a private letter ruling by the IRS in the 1980s, hence the name.

Fraud Detection and Resolution

Fraud Detection and Resolution, including proactive monitoring, investigative support and coordination with legal and financial institutions to ensure swift and effective remediation.

Qualifications include bustng a $50 million Ponzi Scheme, rescuing a group of senior citizens that were victims of an investment corruption.

Irrevocable Life Insurance Trusts (ILITs) 

Irrevocable Life Insurance Trusts (ILITs) represent a specialized estate planning tool designed to own and control a life insurance policy outside of the insured’s taxable estate. It helps manage estate taxes, protect beneficiaries, and control the distribution of life insurance proceeds.

Key Features:

Estate Tax Reduction: Since ILITs (not the insured individual) own the life insurance policy, the death benefit is not included in the grantor’s taxable estate. This can save significant estate taxes, especially for high-net-worth individuals.

Creditor Protection: Proceeds in an ILIT may be shielded from creditors of the grantor or beneficiaries, depending on state laws.

Controlled Distribution The trustee can distribute funds according to terms set by the grantor, such as staged payments or holding assets in trust for minors or spendthrift beneficiaries.  

Charitable Trusts

Charitable Trusts represent legal arrangement in which assets are held and managed by trustees for a charitable purpose, such as advancing education, relieving poverty, promoting health or supporting religious or other public-benefit causes.

Unlike private trusts, which benefit specific individuals, charitable trusts must benefit the general public or a broad class of people.

Key Characteristics:

Exclusively Charitable Purpose: Trusts must be established solely to support one or more charitable objectives, such as: education, relief of poverty,  religious advancement,  scientific or literary purposes,  community development or environmental protection

No Private Benefit: Trusts cannot directly benefit private individuals (e.g., grantors or their families), except to the extent they qualify as part of the charitable class (e.g., low-income students receiving scholarships).

Tax-Exempt Status: Many charitable trusts are tax-exempt under IRS Section 501(c)(3) if they meet certain operational and organizational requirements.

Donors may receive income, gift and estate tax deductions for contributions.

Perpetual Duration Unlike private trusts, charitable trusts can last indefinitely, as long as the charitable purpose continues.

Attorney General Oversight: In most states, charitable trusts are subject to oversight by the state attorney general to ensure proper use of funds.

Types of Charitable Trusts:

Charitable Remainder Trust (CRT): Pays income to individuals, then remainder goes to charity

Charitable Lead Trust (CLT) Pays income to charity for a set time, then remainder to individuals

Pooled Income Fund: Combines donations from multiple donors to benefit charity  

Agency Accounts

Agency Accounts represent types of fiduciary arrangements in which clients (principals) authorize other parties (agents) to manage assets or perform financial tasks on their behalf, without transferring ownership of the assets.

Custodian

• Safekeeping and recordkeeping of assets without investment discretion.
• Services may include collecting income, processing trades, and providing statements. • Often used by clients who retain control over investment decisions.

Escrow Agent

• Temporarily holds funds or assets for two or more parties until specific conditions are met. • Common in real estate transactions, mergers and legal settlements.

Agent for Trustee

Acts as an agent for a trustee; it supports the trustee—who retains legal fiduciary responsibility—by providing professional assistance with administrative, investment, and reporting functions. The trustee remains ultimately accountable, but delegates day-to-day tasks to gain greater efficiency, compliance and expertise.

Primary duties performed as agent for a trustee, include:

Recordkeeping and Accounting
Maintain accurate records of all holdings and transactions. Track cost basis and Generate regular account statements

Income Collection and Disbursement Collect income from trust assets (e.g., dividends, interest, rent). Disburse funds to beneficiaries or third parties per the trustee’s instructions.

Bill Payment and Expense Management
 Pay trust expenses such as taxes, insurance, legal fees, and maintenance costs

Provide regular performance reporting and portfolio analytics.

Tax and Regulatory Support
Gather and organize data for trust tax filings. Generate and distribute Form 1099s, K-1s, and trust-level income tax returns (Form 1041), if authorized.

Beneficiary Communications
Prepare and send periodic account summaries or statements to beneficiaries. Support trustee communications by providing clear, professional documentation. 

Administrative Services
Maintain trust documents and ensure deadlines (e.g., distributions, tax filings) are tracked.

Support trust modifications or decanting where applicable, under direction.


Agent for Executor

As agent, supports the executor (often a family member, attorney, or individual) in carrying out their fiduciary duties, including:

Asset Collection and Valuation

• Assist in identifying, locating, and collecting all assets of the estate.
• Arrange for appraisals and prepare an inventory of estate assets. 

Recordkeeping and Accounting
• Maintain detailed records of all transactions • Prepare interim and final accountings as required by law or court

Bill Payment and Expense Management
• Pay debts, taxes, and ongoing expenses of the estate (e.g., utilities, insurance).

Tax Preparation and Filing Support
• Gather necessary documentation for estate, fiduciary income, and inheritance tax returns. • Coordinate with CPAs or tax advisors to ensure timely and accurate filings.

Distribution Assistance
• Help prepare schedules of distribution according to the will or applicable laws
• Facilitate the transfer of assets to heirs or beneficiaries

Administrative and Clerical Support
Handle correspondence, court forms, and notifications

Provide logistical and administrative support throughout the probate process 

Speciality Asset Administration

Specialty Asset Administration represents a niche trust service offering that handles non-traditional, illiquid, or complex assets held in trusts or estates.

Unlike standard investments (stocks, bonds, mutual funds), these assets require tailored oversight, valuation, legal compliance and often active management.

These assets can include real estate, farm and ranch land, oil, gas and mineral interests, closely held businesses and other non-financial assets.

Specialty asset administration typically includes managing the day-to-day operations, capital improvements and financial aspects of these assets, as well as providing oversight and support for their owners.

Fraud Detection & Resolution

Fraud Detection and Resolution in trust services is a critical process to protect client assets, maintain fiduciary integrity and ensure compliance with regulatory obligations. Click on "Read Below" to learn an overview of how it works as a service feature and operational safeguard:

Trust Protectors

Trust Protectors:    Trust Protectors serve as independent third-party appointees to oversee administration of trusts and ensure that grantor's intentions are fufilled, particularly when unanticipated and unexpected situations and conditions emerge.

Benefits Associated with Trust Protectors: Flexibility and Adaptation: Trusts, particularly irrevocable ones, can be difficult to modify. A trust protector can be granted powers to amend the trust to address changing family situations, legal updates, or the grantor's evolving wishes, potentially avoiding costly court proceedings.

Oversight of Trustees: A trust protector can monitor the trustee's actions, ensuring they are managing the trust prudently and in accordance with the grantor's intent. They can even remove and replace a trustee who is not performing their duties adequately.

Beneficiary Protection: A trust protector can safeguard the interests of beneficiaries, especially in cases where a beneficiary may have special needs or be unable to manage their own affairs.

Dispute Resolution: A trust protector can act as a mediator to resolve disputes between trustees and beneficiaries, potentially preventing litigation.

Asset Protection: In some cases, a trust protector can help protect trust assets from creditors or other risks.

Who Can Serve as a Trust Protector? While anyone can technically serve as a trust protector, they should be:

Independent: Not a beneficiary, trustee, or grantor of the trust.

Competent: Able to understand and fulfill the duties of a trust protector.

Trustworthy: Someone the grantor can rely on to act in good faith.

Examples of Trust Protector Services: Reviewing trust documents: Ensuring the trust accurately reflects the grantor's wishes and complies with relevant laws.

Monitoring trustee performance: Reviewing accountings and other reports to ensure the trustee is fulfilling their fiduciary duties.

Amending the trust: Making necessary changes to the trust terms as needed.

Removing and replacing trustees: If a trustee is not acting in the best interests of the beneficiaries.

Resolving disputes: Mediating disagreements between trustees and beneficiaries.