United Bank & Trust Blog

Are you tired of the new fees popping up at larger national banks? Not getting the type of service you deserve? May be it’s time to consider a new banking relationship. United Bank & Trust is extremely proud of the service and solutions we provide our clients each and every day because we continue to deliver on our promise to treat our clients differently than the big banks.

Why you should consider a community bank like United
As a community bank, United Bank & Trust has always been focused on supporting the local communities we serve. We reinvest locally deposited funds directly back into the local economy in the form of loans to local businesses, individual consumers and non-profit organizations.

How has United helped?
Already this year, United has helped 288 clients buy a new home, 301 clients refinance their mortgage and 20 clients build new homes. United has also secured 30 SBA 7a loans totaling more than $30M, the third most in the state of Michigan, helping small businesses succeed. In fact, the most recent loan secured for a client saved 60 jobs that would have been lost if our client could not have funded their revenue growth.

United’s commitment extends beyond the walls of the bank
United’s involvement extends beyond the walls of the bank into the community through individual co-worker volunteerism and company-wide support for those in need of help. In 2010, United Bank & Trust contributed $271,000 to 196 community organizations and non-profits. Our co-workers volunteered over 10,000 hours to 261 community organizations and non-profits.

So, if you are ready to make the switch to a bank that cares about its clients and your local community, contact a United banking office today or start the process online now.

Also, see what our clients have to say and how we have helped them.

Some have heard of Special Needs Trusts, but do not fully understand their significance. A Special Needs Trust is like an ordinary Trust in that it acts as a container to hold property and assets for someone else’s benefit. However, a Special Needs Trust is carefully drafted to protect an individual who has a disability and who depends on receiving financial and personal support from the government. In many cases, that person’s receipt of benefits from the government is contingent on how much that individual owns (assets) and how much he or she earns (income).

There are two types of Special Needs Trusts. The first, known as a Self Settled Special Needs Trust, is funded with the assets of the individual with a disability. This is used when the individual in question has assets either through inheritance or as a result of a personal injury settlement. The second type of trust, known as a Third Party Special Needs Trust, is funded with the assets of another person, usually a family member or close friend, who wants to support the individual with a disability. In either case, it is critical that assets and income from the Special Needs Trust are not distributed directly to the beneficiary. Assets and income distributed directly to the beneficiary creates a risk of reducing or eliminating that beneficiary’s eligibility to receive government benefits. Moreover, assets must be distributed for specific purposes and not at the beneficiary’s direction.

There are a variety of government benefits and services offered to individuals with disabilities. These include Supplemental Security Income (SSI), Medicaid, Public Housing, Veterans benefits, and food stamps. In some programs, federal law controls who is eligible to receive benefits, and in others like Medicaid, state law controls these requirements. The rules and procedures differ between programs and change frequently. It is imperative that each member of the team charged with handling the management of a Special Needs Trust understands the laws and the latest developments in special needs planning and administration.

The concept of a Trust can be difficult to understand for someone who is not regularly working with one. Adding into the mix tax laws, fiduciary duties, and reporting requirements, an inexperienced Trustee can quickly become overwhelmed. Special Needs Trust administration adds another layer of complexity because improper management could cause the beneficiary with the disability to lose his or her eligibility to receive government benefits. For this reason it is crucial to appoint a professional Trustee who is experienced in special needs planning and administration.

The Wealth Management Group at United Bank & Trust is proud to offer you licensed and experienced trust administrators. We specialize in serving as trustee of a variety of trusts, including special needs trusts, irrevocable trusts, and revocable grantor trusts.

When it comes to saving for retirement, there is never a better time than today to assess your prospects toward meeting your goals. And with our nation’s leaders declaring Oct. 16 through Oct. 22 as National Save for Retirement Week, you have a great opportunity.

National Save for Retirement Week is the first congressionally endorsed, national event formally calling on all employees to take full advantage of employer-sponsored retirement plans.

Experts predict that retirees will need from 80% to 100% of their pre-retirement income to maintain their lifestyle after retirement. Yet, surveys show that most Americans remain unprepared for retirement.

Many workers already participate in company sponsored retirement plans, which provide a foundation for retirement saving. And many workers will also be eligible for Social Security benefits at retirement age. But, that may not be enough. They will need to add additional retirement savings in order to live comfortably and securely during their retirement years – to fulfill their dreams.

For many Americans today it is important to begin saving for retirement – or increasing contributions to meet their goals. National Save for Retirement Week is dedicated to showing how important it is meet retirement objectives by contributing regularly and investing wisely for the long term.

Here are a few simple examples of what it takes to prepare for when it’s time to retire:
• Save just $10 per week in a deferred compensation plan for 40 years and earn an average rate of return of 7 percent, and you will have an account with over $100,000. That just shows the power of tax-deferred savings.
• If you start a little later, don’t be discouraged. You can still save more than $73,000, by setting aside $60 a month in a tax-deferred savings account for 30 years and at a 7 percent return.
• If you are saving now, and you increase your contributions, you can really make a difference in your final total. Over 30 years, adding $25 to your $100 biweekly contribution can increase your account from $264,327 to more than $330,409, assuming you earn 7 percent.
• Saver’s Credit. Sometimes saving seems really hard, especially if your income is limited. The government has a special Saver’s Credit just for you. If you are eligible, you can actually receive money back when you file your tax return.

There are many resources available on the Internet to provide you with the information you need to plan for retirement. Here are a few sites that will help you get started:
• Social Security Administration – You will find calculators to determine what your benefit will be, information on how to apply for benefits and other information about the government retirement system.

• American Savings Education Council – A useful calculator helps you estimate how much you need to save to meet your retirement goals as well as a number of savings tips and useful brochures.

If you would like assistance in establishing your retirement savings goals, please contact me at United Bank & Trust. I am here to help.