Trust/Investment Products

The Industry offers a myriad of products designed primarily to the investment requirements of the more sophisticated clientele demanding more specific fund management customization but without the traditional bank guaranty of return. The more popular products available through TOAP’s member-institutions are:

Basic Fund Management Services
Employee Benefit Plans Under Trust
Personal Living Trust
Bond Issues /Other Obligations Under Deeds of Trust or Mortgage
Custodianship and Safekeeping
Trusteeship of Pre-Need Plans
Unit Investment Trust Fund
Escrow


Basic Fund Management Services

A financial service open to both corporate and individual clients with investible funds opting to place their corporate / personal assets under the management of professional investment advisers. The Trust Entity normally assigns an individual portfolio manager to oversee the fund’s investment. The client gets a regular accounting of his investments and may avail of a customized investment portfolio depending on his needs, the size of the fund and a particular Trust Entity’s internal parameters.

Employee Benefit Plans Under Trust

These are Corporate Trust arrangements where the beneficiaries are employees of corporations. These cover agreements where the Trustee holds funds accumulated from a corporation or its employees, or both, to be used for lumpsum or other periodical payments for retired or incapacitated employees of such corporation in accordance with a private plan adopted by the corporation. The most common example under this arrangement is a “Pension Trust” drawn by an employer under the Labor Code for mandatory payment of retirement benefits and the Tax Code’s requirement that a private retirement plan can only enjoy specific tax exemption if the same is “trusteed”.

Personal Living Trust

Created at the instance of an Individual who wishes to institute a separate Trust Estate out of his general estate, for the benefit of a named beneficiary. Arrangement such as this normally incorporates an estate planning scheme for the administration and disposition of an individual’s property during his lifetime and at his death, as usually set forth in his will.

Administratorship

Arrangement arising out of property administration agreements or those created under orders of courts of competent jurisdiction to manage and distribute the estate of a decedent without a will or a testator who has no executor. The trustee or fiduciary is normally empowered to perform some specific functions, such as enter into contracts of lease, collect rentals due to the property and to pay taxes that may be levied thereon.

Bond Issues /Other Obligations Under Deeds of Trust or Mortgage

Services provided by the trustee under a mortgage trust agreement whereby the trustee holds properties which are the subject of mortgage or collateral for bond issue or other obligations.

Custodianship and Safekeeping

Accountability of the trustee or fiduciary with the trustor or principal under custodianship and safekeeping agreements or on orders of court of competent jurisdiction whereby the trustee or fiduciary keeps in its possession tangible properties or titles to such properties and other titles or documents of ownership.

Escrow

Trustee bank as escrow agent holds money, securities or property deposited by the client /principal, the eventual delivery of which to a third party is contingent upon the happening of a certain event or upon the action taken by the second party.

Trusteeship of Pre-Need Plans

Trusteed arrangement with a corporate-trustor which operates pre-need plans and are required by government regulatory agencies to maintain trust accounts for such activities.

Unit Investment Trust Fund

A Unit Investment Trust Fund (UITF) is an open-ended pooled trust fund denominated in pesos or any acceptable currency, which is operated and administered by a trust entity and made available by participation. Each UITF product is governed by a Declaration of Trust (or Plan Rules) which contains the mechanics for investing, operating and administering the fund.