LANSING, Mich. — Since its roll out in 2005, it's been a slowyet steady stride for trust services at NuUnion Credit Union butthat has been the expectation from the beginning and it willcontinue to be the case at least for the next decade.

Industry experts say it can take up to ten years to build asolid trust services operation and to see returns. The $802 millionNuUnion is pleased with its progress over the past two years havingformed 30 account relationships with a little over $1 million inassets under management, said Chris Day, senior vice president ofmarketing. NuUnion partnered with MEMBERS Trust Company in2005.

“We have about 30 different members that have come through onreferrals, from staff or through seminars,” Day said. “We know itwill take years to establish good, solid relationships.”

What has helped is the growing network of local attorneysNuUnion has linked up with over the years, Day said. The creditunion currently works with ten and is planning to extend alliancesto even more. NuUnion is very selective about the attorneys itworks with, Day said. Staff or existing clients will typically makea recommendation but the credit union follows up with an extensivelist of qualification questions such as what percentage of businessis devoted to estate planning, years of experience and determiningwhether an attorney's pricing is “fair.”

Day said the MEMBERS Trust partnership has been an amicable onewith the nationally-chartered company being instrumental in helpingto educate members on what is available to them and what theirhidden estate planning needs might be. In addition, NuUnionconducts a wide range of financial planning seminars throughout theyear, which have led to referrals to the credit union's trustliaison officer, Russ Steiner. Steiner provides the expertise oneverything from living trusts and estate settlements to managedagency accounts and custody accounts. Steiner has also been thepoint person for training staff on how to spot cues inconversations with members that trust services might be an optionto consider.

“It can be someone with substantial assets that has startedtalking about retiring or someone considering how they want to plantheir estate,” Day said. “Russ listens with a fine-tuned ear.”

NuUnion members using trust services are all over the gamut withmost requesting alternative investments and corporate trusts, Daysaid. Members need only have a minimum of $50,000 in assets to usetrust services at NuUnion, far less than the average $1 millionthreshold some banks require. While some may walk in the doorthinking they need estate planning, sometimes they just need a safeplace to park excess funds, Day pointed out.

Meanwhile, Michigan's economy has taken a beating over the pastfew years with layoffs, budget cuts and plant closings. Day saidtrust services have not been impacted but overall investmentplanning has felt the effects.

“People seem to have been hesitant to give up their money andlike the security of insured funds,” Day said.

Over the next few years, Day said NuUnion will continue to buildin all ways from training to educating members. Some staffers haveeven set up trusts of their own, he added.

Indeed, the inter-generational wealth transfer, which hasestimated at $20 to $25 trillion during the next 20 years, hasarrived, according to “Capturing the Inter-Generational WealthTransfer: Trends and Case Studies,” a June 2007 CUNA LendingCouncil white paper. Baby boomers, born between 1946 and 1964, arestarting to retire and are asking their credit unions for financialplanning as well as wealth management services. In that mix, somein the industry say, is a trust services niche not being served bybanks.

“We will continue to build on what we've established, continueto work with attorneys and build more alliances and continue toeducate staff and especially the members that we are here and weoffer these [trust] services,” Day said.

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