2. You’ve worked hard to achieve success, and now your finances
are more complex and come with additional responsibilities to
take care of those who depend on you. You deserve a dedicated
professional team that can develop a customized investment plan
and provide a variety of personalized and trust services – all while
adhering to one of the highest standards of financial responsibility,
called fiduciary care.
The MassMutual Trust Company, FSB, offers an array of
personalized services, delivered by a team of highly qualified
professionals who work with your financial professional. Our
professional team helps you provide financial security for you
and your family. And, as a fiduciary, we always act with your best
interests in mind.
Contents
1 | Personalized services delivered
by an experienced team
2 | Disciplined investment
philosophy and process
4 | Fiduciary care: The standard of
care you deserve
5 | Trusts for your specific needs
6 | Your choice of trustee
7 | Individual or professional
trustee?
8 | Start a discussion with us today.
Showing Pocket Position
3. 1
Personalizedservicesdeliveredbyanexperiencedteam
Building the right relationships can be critical in
maintaining financial success and preserving wealth.
Through its team of experienced professionals
in the areas of trust management, investments,
tax regulations, and state laws,1
the MassMutual
Trust Company partners with MassMutual financial
professionals to help clients who want to provide
financial security for their families – now and for
future generations.
We deliver high-end concierge services for a variety of
needs, including:
• customized investment strategies, with ongoing
oversight, prudent risk management, objectivity, and
tax efficiency
• cash management services and access to
secured lending2
• estate plan execution including legacy planning
• trust document reviews
• investment portfolio reviews
• multi-generational planning and wealth
transfer strategies
• family wealth stewardship, family meetings
• charitable giving strategies, including
donor-advised funds
• ongoing account administration
We become part of your team, working with your existing
financial team during the planning process and throughout
the life of our relationship with you and your heirs. We
employ an extensive discovery process and take the time to
listen to your needs, wishes, and plans for your legacy. We
also help to address any concerns about changing family
dynamics such as disability, incapacity, divorce, aging,
death, and blended family issues. In other words, we take
a holistic approach in viewing and evaluating your current
situation, in order to design solutions that are specific to
your life, hopes and aspirations.
1
The MassMutual Trust Company, its employees and representatives are not authorized to give tax or legal advice and the information provided is not
written or intended as tax or legal advice. Please consult your tax and legal advisors to determine how this information may apply to your own situation.
2
Loans and letters of credit provided by US Bank.
4. 2
Disciplinedinvestmentphilosophyandprocess
Our process is centered around your goals
We take the time up front to understand what is unique about
you. Then we develop a customized investment strategy and
document it in an investment policy statement.
The investment policy statement outlines the portfolio’s
building blocks and tries to capture what you told us about
yourself – your time horizon, your need for income, your
risk tolerance, need for liquidity, tax situation, and any other
unique needs and circumstances.
The investment policy statement will include the long-term
asset allocation target, the investment strategy, and how the
portfolio will be benchmarked and over what time periods.
We regularly revisit this statement with you and your
financial professional to ensure that we remain aligned with
your wealth management objectives.
Our investment philosophy has grown from our
long experience with meeting client objectives in
changing market conditions. Because our clients
generally have plans that span multiple generations,
we apply an investment philosophy and approach
that provides a customized solution with prudent
risk management.
We carefully select only those asset managers whom
we believe can deliver the expertise and experience
that will help meet your long-term objectives. Then
we carefully monitor both the managers and your
individualized plan, to ensure they remain aligned
with your long-term goals.
Investment process
A four-step investment process brings together your needs with our expertise and discipline to build a comfortable and successful
wealth management strategy just for you.
4 Monitor and adjust
Allocationsaremonitoredonanongoingbasis.Asyour
needsandmarketconditionschange,specificinvestments
canbeadjustedperiodicallytohelpmanage risk.
3 Investment policy statement
Ourinvestmentteamthenreviewsanddocumentsan
investmentstrategyspecifictoyourneeds.
2 Asset allocation
Next,weimplementastrategicassetallocationwith
diversificationamongassetclassesandlong-termand
time-testedinvestmentstrategies.
1 Client profile
Ourinvestmentapproachbeginswithanunderstandingof
yourindividualinvestmentobjectives,risktolerance,time
horizon,taxsensitivity,incomeandliquidityneeds.
5. 3
Ongoing investment oversight
MassMutual Trust Company investment professionals have
a thorough, disciplined, and continual due diligence
process to ensure sub-advisors continue to meet the needs
of our clients.
Our ongoing due diligence and investment oversight
includes a number of checks and balances, including
internal supervision by the Trust Company Investment
Committee and Board of Directors.
MassMutual Trust remains vigilant in watching for any
changes in our sub-advisors’ investment philosophies,
personnel policies, or organizational structures that may
have an impact on our clients’ portfolios. We engage with
only those sub-advisors whom we believe can deliver the
expertise and experience that will help you meet your
long-term objectives.
Prudent risk management
Our investment team constructs a prudently well-diversified
portfolio for each client, ensuring that there are no
concentrations of risk in any one asset class, economic
sector or individual security. As conditions change in the
economy, the financial markets, or in your own individual
circumstances, adjustments are made as needed.3
Sub-advisor selection criteria
We select investment sub-advisors who share our
commitment to service, integrity, quality, discipline,
oversight, and governance. Each sub-advisor has an
experienced team of portfolio managers with a unique
perspective to managing money for the long term and
through all types of financial market cycles. We use
non-proprietary asset managers, providing an additional
layer of objectivity in managing your assets.
3
Asset allocation and diversification do not assure a profit and do not protect against loss in declining markets. All investing is subject to risk, including the
possible loss of principal.
6. 4
Fiduciarycare:Thestandardofcareyoudeserve
How we provide fiduciary care
A fiduciary has a number of responsibilities to consider
when acting in your best interest. We construct a portfolio
of investments customized to your investment goals,
providing a careful analysis to balance risk against return,
and diversifying assets to focus on the performance of the
entire portfolio.
Our responsibility is to monitor and continually adjust the
portfolio as economic conditions change.At least once a
year, our investment team formally reviews every account to
ensure that the portfolio remains consistent with the client’s
financial goals.
We provide full and fair disclosure of all material facts of
each account, including a quarterly report of the account’s
performance. Notably, we choose to use non-proprietary
investments in order to avoid even the appearance of any
conflict of interest.
In addition, we participate in mandated, regular, in-depth
reviews by the Office of the Comptroller of the Currency
(OCC). Oversight by the OCC is among the most rigorous
applied to advisor relationships.
Having accumulated higher net worth, you expect
and deserve the highest levels of competency,
service and care from your financial firm. The
fiduciary standard of care is the pinnacle standard
in the industry.
The fiduciary standard of care is the framework
used by the MassMutual Trust Company to build our
service model and offer customized solutions so that
decisions are made in “your best interest.”
The fiduciary standard
Our fiduciary standard means that we have the responsibility
to act solely in the best interest of our clients, under
circumstances that require the use of reasonable care,
skill, prudent judgment and rigorous accountability on a
continuing basis.
What does it mean to be a fiduciary?
·· A fiduciary must act with each client’s best interests in mind. Any recommendations must be made in utmost good
faith and with full disclosure of all material facts and conflicts of interest.
·· A fiduciary must provide regular reporting of account financial information.
·· The MassMutual Trust Company chooses to use non-proprietary investments to avoid potential conflicts of interest.
·· The MassMutual Trust Company is overseen by the Office of the Comptroller of the Currency (OCC). Oversight by the
OCC is among the most rigorous applied to advisor relationships and includes mandated regular in-depth reviews.
·· A fiduciary reviews the portfolio regularly and makes prudent adjustments to match a client’s current goals.
7. 5
The MassMutual Trust Company can help you establish a trust
with a dedicated Trust Officer who administers the trust and
serves as your primary contact for ongoing trust management
and any ad hoc requests or questions you may have.
The chart below briefly outlines the different types of trusts
available to you through the MassMutual Trust Company.
What do you want to achieve?
What type of trust will get the
results you want?
What is the benefit/feature
of this trust structure?
HaveaplaninplaceshouldIbecome
incapacitated
Revocable Living Trust
• Managesomeoflife’sunforeseen
circumstancessuchasadisability
• Explainyourwishesforyourchildrenwhenyou
arenolongerinthepicture
• Youcanretaincontrolofthetrustandchangeor
haveitrevokedduringyourlifetime
• Trustassetspassdirectlytobeneficiaries
withoutgoingthroughprobate,whichhelps
eliminateanychallengeswithinanestateand
maintainsprivacy
Providefundsforestatesettlement;assetand
somecreditorprotectionforbeneficiaries
Irrevocable Trust
• Passonassetstofamilyusinggiftingadvantage
withoutgoingthroughprobate
• Mayreduceestatetaxesontheappreciationof
trustassets
• Anirrevocabletrustanditsprovisionscannot
bechangedormodifiedonceitissigned
• Providesbeneficiarieswithcreditorprotection
Passonassetstofamily;leavealegacyfor
your family
Irrevocable Life Insurance Trust
• Maximizelifeinsurancebenefitsbyproviding
liquidassetstomaintainfamilylifestyle
• Removesthelifeinsurancedeathbenefitfrom
theestate,creatingatax-advantagedwayto
transferwealthtoyourlovedones
Givetoafavoritecharitywithoutendangering
incometoyouoryourfamily
Charitable Remainder Trust
• Supportyourfavoritecharity • Allowsyoutoenjoyanincomestreamwhile
avoidingcapitalgainstax
• Providesanincometaxdeduction
Providecareforalovedonewithspecialneeds Special Needs Trust
• Havepeaceofmind–knowingthatalovedone
whomaynotbeabletocareforher/himselfwill
becaredfor
• Thetrustisstructuredtocontinuetheperson’s
eligibilityforgovernmentprogramsandbenefits
• Providesforadditionallifestyleneeds
Providesomefinancialsecurityforyourchildren
afteryourlifetime
Trust Under Will (Testamentary Trust)
• Mayperformmanyofthefunctionsof
other trusts
• Doesnottakeeffectuntilyourdeath
• Createsatrustatdeathunderawill
• Changescanbemadetothetrustthroughout
yourlifetime
• Maybesubjecttopublicscrutinyaspart
ofprobate
Trustsforyourspecificneeds
There are different types of trusts to meet a variety
of goals. Trusts are designed to address your
personal wishes and maintain control over how your
estate is managed, preserved, and distributed.
8. 6
One of the most important decisions that clients
face when creating a trust is the selection of
a trustee. A trustee is required to administer the
trust to ensure that your wealth is managed and
distributed according to your wishes as presented in
the trust document, while keeping your beneficiaries’
best interests in mind. You have the ability to choose
an individual, a professional trustee, or a combination
of both for the role of trustee.
Trustee responsibilities
The overriding responsibility of a trustee is to safeguard the
assets of the trust grantor (if living) and for the beneficiaries
who will receive them after the grantor dies. Trustees must
follow the instructions in the trust document and must fulfill
certain duties such as:
• Invest assets in a prudent (conservative) manner,
i.e. in a way that will result in potential reasonable
growth with minimum risk.
• Treat multiple trust beneficiaries impartially (i.e. not
favoring one over another), unless the trust allows the
trustee to do so.
• Keep accurate accounting records of assets,
liabilities, receipts, disbursements, and income,
estate and gift taxes.
• Record trustee actions and routine trust actions.
• File tax returns.
• Report to the beneficiaries and communicate
information to relevant parties as the trust requires.
• Keep personal accounts and assets separate from the
trust assets, and ensure that trust assets are used only
as intended in the trust document.
Individual vs. professional trustees
When selecting a trustee, many people consider a trusted
family member or a close friend for the role. It is likely that
an individual trustee will have a long and close history
with the trust beneficiaries. While this can add a helpful
element to the relationship, it can also cause critical issues
to arise. The chart on the facing page outlines why you may
want to consider a professional, corporate trustee, such as
The MassMutual Trust Company.
The MassMutual Trust Company can serve in a variety
of roles relating to the responsibilities of the trustee as
outlined below.
• Sole trustee: We assume all administrative
responsibilities, investment management decisions,
and discretionary distributions in accordance with
the terms of the trust document.
• Co-trustee: We take care of the administrative and
investment management responsibilities delegated
to us. Discretionary decision-making responsibilities
are shared with other co-trustee(s).
• Successor trustee: We assume trustee responsi-
bilities when the current trustee is no longer willing
or able to serve as trustee.
• Agent for trustee: We take care of the administrative
and investment management responsibilities, while
all discretionary decision-making responsibilities are
handled by the trustee. In this role, a family member
or close friend who is trustee hires MassMutual
Trust Company to act as their agent. Critical and
important responsibilities are delegated to us so that
the trustee feels confident that fiduciary responsi-
bilities and investment management activities are
managed appropriately and in accordance with the
trust document.
Yourchoiceoftrustee
9. 7
Speak with your MassMutual agent for more information about The MassMutual Trust Company
and our personalized investment and trust services – all with your best interests in mind.
Individual acting as trustee
(a family member or friend)
Professional trustee
(MM Trust)
Resources • Mayonlybeabletoworkpart-time
• Mayhavelittletonoexperienceortrackrecord
• Mayneedtoseparatelyemployspecialists
• Hasfull-time,trained,professionalandcredentialedstaff
andspecialists
• Hasstaffandspecialistswhohavemanyyearsofexperience
administeringtrustaccounts
Cost • Feesofvariousotherspecialistsincreaseoverallcost
ofrelationship
• Offersmultipleservicesatonefee
Objectivity • Mayhaveaconflictofinterestdueto
familialrelationships
• Isanimpartialthirdparty
Continuity • Servicemaybeinterruptedbyillness,deathordisability • Serviceisprovidedbyawholly-ownedsubsidiaryofMassMutualLife
InsuranceCompany, afinancialinstitutionthathasbeeninbusinessfor
morethan163years
Investment
Knowledge
• Maynotbeexperiencedinassetmanagement
• Mayholdcashuninvestedforperiodsoftime,which
maydampenlong-termperformance
• Substantiallyexperiencedinmanagingallassetsincluding
uniqueassets
• Reinvestscashdaily
Communication • Maycommunicateinfrequentlywithbeneficiariesand
maynotbeabletoaddresscomplexoremotionalissues
• Iscommittedtoregularlycommunicatingwithbeneficiaries,answering
questionsanddiscussingallissueswithsensitivityandobjectivity
Individualorprofessionaltrustee?
10. 8
Startadiscussionwithustoday.
For more information about the services offered by the MassMutual Trust Company,
contact your MassMutual Agent or the MassMutual Trust Company toll-free
at 1-888-894-5354 or via e-mail at info@massmutualtrust.com.
